What "additional insured" means on a certificate of insurance

If you hire subcontractors or vendors, your contracts probably say they must name you as additional insured. It is one of the most important lines on a certificate of insurance, and one of the most often missed.

What it means

Being an additional insured means the vendor's insurance policy also covers you for claims that come from their work. If a subcontractor's employee drops a tool and injures a visitor, and the visitor sues both of you, the subcontractor's general liability policy can defend and pay for you too, instead of your own policy.

That matters because claims on your own policy raise your premiums, and some never get paid at all.

Where it shows on the certificate

• The ADDL INSD column, left of each policy row, shows a "Y" when the vendor says you are an additional insured on that policy, usually general liability and often auto and umbrella.
• The Description of operations box often repeats it in words, for example "The certificate holder is an additional insured on general liability where required by written contract."

The certificate is not the proof

A certificate only summarises the insurance. The thing that actually adds you to the policy is an endorsement: a page attached to the policy. Common ones are called CG 20 10 (covering work in progress) and CG 20 37 (covering finished work). Some policies use a "blanket" endorsement that covers anyone the vendor agreed in writing to add.

So when the certificate shows a "Y", ask the vendor to send the endorsement page too. A simple request works: "Please send a copy of the additional insured endorsement for your general liability policy."

Two terms that often come with it

• Primary and non-contributory: the vendor's policy pays first, before yours, and doesn't ask your insurer to share the cost. It is usually written in the description box.
• Waiver of subrogation (the SUBR WVD column): the vendor's insurer agrees not to sue you to recover what it paid out.

What to do if it's missing

If your contract requires additional insured status and the column is empty, ask the vendor to have their insurance agent issue a corrected certificate and the endorsement. It is a routine request for an agent, usually done in a day or two.