What is an Additional Insured? (Insurance 101) #business #insurance

You may have heard the term additional insured, but what does that actually mean? In the most basic terms, it's usually somebody being asked to be added to your insurance policy, so they're protected under your coverage, usually for work that you're doing for them. This can be very common, especially in industries like construction or real estate where maybe your landlord, a developer, somebody like that wants to be added to your coverage so that they're also protected in case something does go wrong. And it is important to note just handing somebody a certificate of insurance with them listed does not mean that they're added as an additional insured to the policy. This needs to be officially added on by the insurance company. And it's also important to note an additional insured does not replace somebody else having their own coverage. It's simply an added layer of protection. So they definitely still need their own insurance policies.