Requesting to be added as an additional insured to a policy should occur when you’re in a circumstance in which in which a business or company is coming onto your property to perform their operations. For example, if you own a window washing company (ABC Windows) and have a contract to wash windows at all Home Depot locations, Home Depot would want to be sure they are listed as additional insured on ABC Window’s policy. That way, if Home Depot is sued for a 3rd party claim due to ABC Windows’ negligence, they can pass the responsibility on and have ABC Windows policy respond to the claim.
If you are not sure whether you should be added as an additional insured, contact your insurance broker, who will provide you with the advice you need to make the right decision.