additional insured
Definition
An additional insured is a person or business that gets added to someone else's insurance policy so they are also protected by that policy. For example, if a contractor works on your property, you might require them to add you to their liability policy so that if something goes wrong, their insurance covers you too.
Example
A landlord often requires a tenant business to list them as an additional insured on the tenant's general liability policy, meaning if a customer slips and falls in the shop and sues the landlord, the tenant's insurance steps in to defend and pay.
Watch Out
Being an additional insured only protects you for the other party's actions, not your own mistakes, so you still need your own separate insurance policy.
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This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.