Additional Insured
An additional insured is a person or organization added to another party's liability policy by endorsement, so it has coverage for liability tied to that party's work, premises, or products, usually within limits the endorsement sets. Common in enterprise contracts.
Last updated October 13, 2026
How additional insured status works
A standard general liability policy covers the named insured and a defined group of related parties. Anyone else is not an insured. To give another party protection, the policy is changed by an endorsement that adds that party to the "who is an insured" section. The endorsement may name the party on a schedule or add parties automatically when a written contract requires it (often called a blanket endorsement).
Coverage is tied to the relationship the endorsement describes. Common ISO forms include CG 20 10, which addresses ongoing operations for an owner or contractor; CG 20 37, which addresses completed operations; and CG 20 26, a more general form for a designated person or organization. Later editions of these forms differ in wording, so the edition on the policy matters.
Example
A software company signs a services agreement with a large customer. The contract requires the customer to be listed as an additional insured on the software company's general liability policy. The broker asks the insurer to issue an endorsement naming the customer. If a covered claim later arises out of the software company's work for that customer, the customer may be defended under the software company's policy, subject to the endorsement wording and policy limits.
Additional insured vs. related terms
Contracts use several similar phrases, and each one asks for something different from the policy.
- Named insured. The named insured is the party the policy is issued to. It pays the premium, accepts the policy conditions and usually has the broadest rights. An additional insured is added by endorsement and generally has narrower coverage tied to a specific relationship.
- Certificate holder. A certificate holder only receives evidence of insurance. A certificate of insurance may mention additional insured status, but the endorsement on the policy is what creates it.
- Primary and non-contributory. This wording sets the order in which policies respond. It is a separate request from being added as an insured.
- Waiver of subrogation. A waiver of subrogation limits the insurer's right to recover payments from a party. It does not make that party an insured.
A second example: ongoing and completed operations
A hypothetical hardware company installs devices at a customer's facility. The contract requires the customer to be an additional insured for both ongoing operations and completed operations. When the broker reviews the policy, only an ongoing operations endorsement is attached. The company asks the insurer for a completed operations endorsement before the install begins. Without it, a claim that arises after the work is finished, such as an injury traced to an installed device, might fall outside the customer's protection even though the contract promised it.
What to watch for
- It is not a certificate. A certificate of insurance shows that a policy exists. The endorsement is what actually adds the party.
- Limits are shared. Additional insured status does not increase the policy limits. The named insured and every additional insured draw on the same limits.
- Scope is narrow. Coverage applies only to the liability the endorsement describes, not to everything the additional insured does.
- Ongoing versus completed work. Some forms cover only ongoing operations, others only completed operations. A contract that requires both usually needs both endorsements.
- Related contract terms. Contracts often pair additional insured status with primary and non-contributory wording and a waiver of subrogation. Each is a separate change to the policy.
Why it matters for technology, AI, fintech and digital-asset companies
Enterprise customers, landlords, and platform partners frequently require additional insured status in vendor agreements, and procurement teams check for it before signing. Knowing which endorsement a contract calls for helps a company avoid delays or a breach of contract. Other coverage lines, such as technology errors and omissions, may have their own rules for adding parties, so each policy needs to be read separately.
Questions to ask your broker or underwriter
- Does the contract call for ongoing operations, completed operations or both, and which endorsement forms and editions does it name?
- Is the status granted by a blanket endorsement (parties added automatically when a written contract requires it) or by a schedule that names each party?
- Does the endorsement limit coverage to liability caused in whole or in part by the named insured? Some editions do.
- Does the endorsement cap the additional insured's coverage at the limits the contract requires? Some editions do.
- Does the contract also require the status on an umbrella or excess policy, and does that policy follow the primary wording?
- Who is responsible for keeping the status in place at each renewal?
Common mistakes
- Treating the certificate as proof. A certificate that lists a party, or ticks an additional insured box, does not change the policy.
- Asking for the wrong form. Ongoing and completed operations are different exposures and often need different endorsements.
- Overlooking other lines. A requirement written for commercial general liability may not translate to other policies, which can have their own rules.
- Forgetting renewal. A new policy term needs the endorsement again unless a blanket form carries it forward.
- Assuming more protection than exists. The additional insured shares the same limits as everyone else on the policy, and coverage is limited to what the endorsement says.
How additional insured requests show up for growing companies
Enterprise customers, landlords, lenders and platform partners commonly ask vendors to name them as additional insureds. For software and fintech companies, customers sometimes ask for the same status on cyber or technology E&O. Those forms often handle additional insureds differently, or not at all, so it is worth raising early and asking whether contract language can be adjusted. Our pages on general liability and errors and omissions explain how each line is usually structured, and startup insurance by stage covers the contracts that tend to arrive first. Review the endorsement wording against each contract before signing, not after.
See how this applies in practice: insurance requirements in enterprise contracts and tech E&O and cyber insurance.
Related terms
Frequently asked questions
What is an additional insured?
An additional insured is a person or organization added to another party's liability policy by endorsement, so it has coverage for liability tied to that party's work, premises, or products, usually within limits the endorsement sets. Common in enterprise contracts.
What does additional insured mean in insurance?
An additional insured is a party that is not the named insured but is added to a liability policy by endorsement. It typically receives defense and indemnity for liability connected to the named insured's work, premises, or products, as far as the endorsement wording allows.
Is an additional insured the same as a certificate holder?
No. A certificate holder is simply the party that receives evidence of insurance. An additional insured has been added to the policy itself by endorsement. A certificate may state that additional insured status exists, but the policy endorsement is what creates it.
Does adding an additional insured increase the policy limit?
No. Additional insureds share the same limits as the named insured. If several parties have claims under the same policy, payments for all of them reduce the same limit, so a large claim can leave less available for others.
Who can be an additional insured on a policy?
Almost any person or organization that has a contractual or business relationship with the named insured, such as a landlord, customer, lender or contractor. Whether the insurer will add a given party, and for what activities, depends on the policy and the endorsement.
How do I add an additional insured to my policy?
Ask your broker, who requests an endorsement from the insurer naming the party or adding parties required by written contract. The insurer then issues the endorsement, and the certificate of insurance can reference it. Whether there is a charge depends on the insurer and the form.
Does additional insured coverage apply to the additional insured's own negligence?
It depends on the endorsement. Some editions limit coverage to liability caused in whole or in part by the named insured's acts or omissions, while older or broader forms may be wider. Read the exact form and edition, and do not rely on the certificate.
Do all insurance policies allow additional insureds?
No. Additional insured endorsements are most common on general liability and often available on auto and umbrella policies. Other lines, such as some cyber and professional liability forms, may restrict or decline the request, so each policy needs to be checked.
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