Additional Insured Status

Additional insured status is a provision in an insurance policy that extends coverage to someone who is not the primary policyholder, usually in the context of liability insurance. For example, a contractor might have their client added as an additional insured on their liability policy. This means if a claim arises related to the contractor's work, the client's interests are also protected under the contractor’s insurance. This status helps manage risk and provides additional reassurance to parties involved in a contract, ensuring that all stakeholders have coverage in the event of an incident.