Additional insured
An "additional insured" is a person or organization added to an insurance policy, typically a liability policy, to receive coverage alongside the main policyholder. This arrangement often occurs in business contracts where one party wants protection from risks associated with the other party's actions. For example, if a contractor is hired to work on a property, the property owner may request to be listed as an additional insured on the contractor's insurance. This helps ensure that if an accident occurs, both the contractor and the property owner have financial protection under the policy.
Additional Insights
-
An additional insured is a person or organization added to an insurance policy, providing them with coverage under that policy. This is commonly done in contracts, such as between contractors and property owners, to protect the owner from liability for incidents that occur related to the contractor’s work. By being an additional insured, the party receives some benefits of the coverage, such as legal defense or payment for damages, ensuring they’re protected against claims related to the activity or operations of the primary insured. This mutual protection helps manage risk in business relationships.