An additional insured (AI) is a third party you can add to your policy. They’re covered by your liability insurance in the event of a claim that relates to your business.
The term ‘additional insured’ might sound fancy, but adding one to your policy is super easy. Here’s how to do it without breaking a sweat!
How to Add Additional Insureds to My Insurance Policy
You can add one or more additional insureds to your policy during the checkout process or through your online dashboard 24/7.
How to Add an Additional Insured to a New Policy
- Buy your small business insurance policy
- Add an additional insured when prompted during the application
- Enter their name, address, and contact information
- Pay for the added insured(s) at checkout (if applicable, along with your total premium)
How to Add an Additional Insured to a Current Policy
- Log in to your online account
- Click “Add additional insureds” under the “Manage Policies” section
- Enter their name, address, and contact information
- Pay for the added insured(s) if necessary
- Click on “Proof of Insurance” to re-download your updated Certificate of Insurance (COI)
Once you add someone to your policy, they’ll be notified by email and receive a copy of your updated Certificate of Insurance.
Need to Add Your Business as an Additional Insured on Someone Else’s Policy?
Insurance Canopy makes it easy for associations, event organizers, venues, building owners, and others to automatically add their businesses as additional insureds on an individual’s liability policy. Plus, you can manage and verify all your Certificates of Insurance from one easy-to-use dashboard — no extra cost involved!
Why You Need to Add an Additional Insured
You’ll usually add someone as an additional insured when you’re working with other businesses, organizations, or individuals. Some common situations where you might need to add someone include:
- Teaming up with a business partner on a project or event
- Providing services on someone else’s property
- Renting space or working in a shared area
- Working with vendors, clients, or customers
- Participating in events or markets with potential liability risks
By adding someone to your policy, you’re helping protect them from any financial responsibility if something goes wrong due to your operations. This could cover things like:
- Bodily injury
- Property damage
- Legal fees
- Other related claims costs
Ultimately, you’re helping to minimize risk for everyone involved, which is a win-win!
Who Can and Can’t Be Added as an Additional Insured?
The person or company asking to be added, named, or listed on your policy as an additional insured will let you know about this requirement, and they should provide their contact info you’ll need. But it’s important to know who can and can’t be on your policy.
If you’re ever unsure about who to add, always double-check with the party you’re working with.
| ✔️ Who Can Be Added | ❌ Who Cannot Be Added |
|---|---|
|
Associations |
You (the business owner) |
|
Cities |
Businesses you own or operate |
|
Contractors/Subcontractors |
Business partners |
|
Distributors |
Employees |
|
Event organizers |
Family members |
|
Franchisees |
Friends |
|
Landlords |
General public |
|
Promoters |
Other vendors |
|
Retailers |
Staff or crew |
|
Suppliers |
Volunteers |
|
Venues |
|
You might not need to add everyone from this list, but it helps to know the potential parties and entities that could ask for additional insured status.
What Coverage Does an Additional Insured Receive?
When you add someone to your policy, they get the same basic general liability coverage you have. For example, if something happens at an event you’re attending, the event organizer could be covered for any claims that come from your actions.
However, they won’t be covered for extra protections you might have, like for your tools or equipment. They’re only covered for things related to your business. So, if a pipe bursts in their building, they’ll need to have their own coverage for that.
Navigating Policy Adjustments: How Adding an Additional Insured Affects Your Coverage
Good news: Adding someone to your policy won’t change the amount of coverage you have. They’ll be covered the same way you are if something happens because of your business.
Just remember, your policy only covers accidents caused by your business. If something unrelated happens, they’ll need to get their own coverage.
Common Requests from Additional Insureds
You may be asked to add certain protections to your policy. These are also known as endorsements. Two of the most common ones are:
- Waiver of Subrogation: This protects the added party from being held responsible for damages if something goes wrong
- Primary Non-Contributory: This ensures your policy will be the first to cover any claims related to the added insured, even if they have another policy
These endorsements can offer extra peace of mind for both you and the person you’re adding. Often, these requests come from their legal or insurance team, who want to make sure everything is covered properly for the work, event, or operations you’re doing.
Certificate of Insurance vs Additional Insureds
A Certificate of Insurance (COI) is a document that summarizes your entire insurance policy. When you add someone as an additional insured, they’re essentially listed on that certificate. They might ask you for a copy of your COI to confirm that you have the right coverage, like for an event or venue.
The Cost to Add an Additional Insured
The cost to add an additional insured can vary. Some policies include this for free, while others might charge a small fee. For example:
- Beauty and bodywork businesses: $15 for one, $30 for unlimited
- Fitness professionals: Free
- Event vendors: Free
Depending on your business and policy, you could be adding outside parties with little to no extra cost!
FAQs About How to Add Additional Insureds to an Insurance Policy
What Types of Businesses Commonly Request or Need Additional Insureds?
The types of businesses that commonly request or need additional insureds include:
- Service providers working on someone else’s property or in a shared space
- Contractors teaming up with other businesses on a project
- Retailers or vendors selling products in someone else’s store or at an event
- Property owners renting out space or leasing to tenants
- Organizations partnering with others for events, promotions, or projects
- Suppliers working with businesses on contracts or deliveries
If you’re working with another party where something could go wrong, they might ask to be added, named, or listed on your policy to help protect them from any issues tied to your business.
Do Additional Insureds Get Notified of Policy Changes or Cancellations?
Yes, additional insureds are notified of policy changes or cancellations.
We digitally inform any named party on your policy via email of important changes to your policy, including cancellations, as this may impact their coverage as an additional insured or their ability to maintain contractual agreements.
It’s vital that you maintain an active policy when required to by another entity, or else you risk breach of contract, legal complications, or termination.
Businesses can reach out to us to verify to status of your policy at any time, and parties who partner with us can see a copy of your policy at any time, including their contact information you have listed for them.
Can You File a Claim as an Additional Insured?
Yes, you can file a claim as an additional insured, as long as the situation is related to the policyholder.
To begin the process, please contact us, and we will send you the necessary digital claims form.
Do Additional Insureds Need Their Own Policies?
Yes, additional insureds need their own policies. Your policy only covers them for issues directly related to your actions. It won’t protect them from things unrelated to your business.
For example, if you’re working in someone else’s space and an accident happens because of your actions, they’ll be covered. But if something unrelated to your work (like a broken pipe) happens on their property, they’ll need their own coverage.
Is an Endorsement Required to Add an Additional Insured?
Yes, an endorsement is required to add an additional insured to your policy.
The good news is, with Insurance Canopy, this endorsement is added automatically when you add another person or business to your policy — there are no extra steps on your end!
If the person you’re adding requires any extra endorsements on your policy, you might need to make some minor updates by adding these modifications, but it won’t be the same as adding an additional insured.
Can Subcontractors Add Me as an Additional Insured?
Yes, subcontractors can add you as an additional insured on their policy, even if you have already added them to your policy.
It’s common for everyone involved in a project or job to add each other to their policies to help share the responsibility and ensure everyone’s covered, including independent contractors.
