additional insureds
Definition
An additional insured is a person or business you add to your insurance policy so they also receive protection under that policy. Companies often require this when they hire contractors or vendors, because they want your insurance to cover them if something goes wrong during your work for them.
Example
A property management company hires you to renovate an apartment and asks to be named as an additional insured on your liability policy, meaning if a worker gets hurt on the job, their legal costs are also covered.
Watch Out
Adding someone as an additional insured can reduce the coverage available for your own claims, so always check with your insurance agent before agreeing to it.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.