Additional Named Insured

An additional named insured is a person or corporation named on your insurance policy who now gains the coverage that you have purchased. Some of the larger corporations are layering their insurance coverage with this technique. The end result is that the contractor's policy will pay out until the limit of liability has been exhausted on any claims triggered while working on a specific project. It is now standard that subcontractors are required to provide proof of insurance for any jobs that they will perform. Often the subcontractor will name the contractor as their additional named insured.

Your contract, lease or other documentation should be reviewed with your broker or agent. Often a prudent broker will send a copy of this document to the insurance underwriter to be sure all conditions have been met.

It is important to note the difference between an additional insured and an additional named insured. The additional named insured gains the entire policy coverages and has the rights to amend the policy. It is more usual to see the request from a contractor with the requirement of "additional insured".

Discuss any concerns with your broker or agent.

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