An Additional Insured is an individual or business that is added to a policy. This person receives the same coverage benefits as the policyholder. In most cases, an Additional Insured is added through an endorsement or rider to the policy. A rider is a document that is attached to the policy. It provides additional protection for an additional person or business. This person or business will be verified as insured by the certificate holder and will receive a copy of the policy as proof of insurance.
If you're a downstream service provider, you're probably asking your insurance broker or carrier whether they are a Certificate Holder or an Additional Insured. Each of these designations has different benefits, and it's important to understand what each entails. If you're the owner of a certificate, you'll typically receive a Certificate of Insurance from your insurer. As an Additional Insured, you'll get the benefits of the policy, and any changes that occur to that coverage. In addition to receiving the Certificate of Insurance, you'll likely receive notifications of changes to the coverage, cancellations, and more.
If you're the owner of a business, an Additional Insured status may be the best way to protect your company from liabilities. This type of coverage means you'll receive coverage for any injuries or damages resulting from a third party's negligence. If your business has a subcontractor or vendor, you'll also get coverage and rights. You'll want to make sure your subcontractor or vendor has a Certificate Holder designation, or else you'll be left with no coverage.
When you're considering adding an additional insured to your insurance policy, you should ask your agent or broker to show you the COI of that vendor. A COI will demonstrate that the vendor has insurance coverage, and that the policy holder is correctly covered. Additionally, if you're working for someone else, you can request to be named as an additional insured. This will ensure that you are covered under the vendor's policy.
When a business adds an additional insured, it is important to keep in mind that the certificate holder has the right to receive notifications about policy changes or cancellations. However, the additional insured is not authorized to make a claim under the policy, and is only provided with notification of any changes. This allows the additional insured to protect his or her own interests as well. Moreover, the policy holder can receive notifications about the changes, as long as he or she is added to the policy as an Additional Insured.
If you're the owner of a certificate of insurance, adding an Additional Insured can be a smart move. This type of policy is often required when you're working on a project with a third party. An additional insured will get a certificate of insurance as confirmation of your coverage. If you're not sure if you need an Additional Insured, Next Insurance has a guide for you.