What is an example of an additional insured

For example, say you use a contractor on a project who causes an accident that leads to you being sued. If you're an additional insured on the contractor's policy, you can make a claim to pay for the damages and legal fees, rather than relying on your own insurance.

Who should be added as an additional insured?

To be included as an additional insured under a liability policy, a person or entity must have a business relationship with the policyholder (named insured). Here are some common business relationships that create a need for additional insured coverage: Landlord and tenant. General contractorand subcontractor.

What is the purpose of adding an additional insured?

An additional insured extends liability insurance coverage beyond the named insured to include other individuals or groups. An additional insured endorsement protects the additional insured under the named insurer's policy allowing them to file a claim if sued.