What is an “additional insured”?
An additional insured is a personal or entity that is added to an insurance policy to transfer its risk onto that of the policy holder. This is done due to a contractual relationship between the parties with the policyholder needing to assume liability of the additional insured. Example: A homeowner is seeking renovations on their home. When hiring the General Contractor the homeowner wants to ensure any damages to the home, any bodily injuries due to theworkor any injuries to the employees of the contractor while on site are the responsibility of the General Contractor and do not require them to file against their homeowners policy. As such the homeowner requests to be added as an additional insured on the general liability, automobile and workers compensation insurance of the General Contractor to have rights to those policies instead.