A vendor additional insured (AI) is a third-party entity added to your insurance policy, typically an event organizer or venue.
You’ve probably been asked to add an additional insured (AI) to your vendor insurance policy. But what does that actually mean for you, and how does it affect your coverage?
Understanding additional insured status helps you navigate your coverage the next time it’s required.
What is Additional Insured (AI) Status?
When you add someone as an AI to your policy, you’re extending a portion of your coverage to them, and they are receiving “additional insured status.”
This means their business information will be listed on your vendor Certificate of Insurance (COI) and share the same coverage benefits in the case of a claim caused by you that may impact their business.
Why Do I Have to Add AIs?
You’ll typically add someone as an AI because you’re working with them in some capacity, like attending their event as a vendor, working on their property, or selling products in their store or at their event.
Many entities will require vendors to list them as an AI before they can attend events, sign contracts, or do business together.
The additional insured wants to limit their risks and avoid being financially responsible for incidents that may occur due to your business. This could include:
- Bodily injury
- Property damage
- Legal fees
- Other related costs
How Does Additional Insured Status Work for Event Organizers and Venues?
When accidents strike, it’s not just your business that could be affected; the event, the venue, or even the city may be involved in a claim. That’s where additional insured (AI) coverage comes in.
You add the event and venue as AIs to your policy
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Someone gets hurt at the event because they tripped over an extension cord running to your booth for power
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The injured guest names you, the event, and the venue as responsible parties in a lawsuit and demands that their medical bills be paid
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Your insurance covers the legal fees and medical expenses owed by you, the event, and the venue for the accident
What Does it Do to My Coverage?
Listing an additional insured won’t change your coverage, limits, or the amount of coverage allocated to you. It simply ensures the AI(s) will receive the same protections you have if they’re named in a claim.
However, your policy only covers additional insureds for incidents caused by you or your business. If the incident is not related to your actions, the additional insured may need to seek coverage elsewhere.
How to Add an Additional Insured to My Vendor Policy
You can add additional insureds to your policy during the checkout process or through your online dashboard 24/7.
How to Add AIs to a New Policy
- Buy a vendor policy
- Add an additional insured during checkout
- Enter their name, address, and contact information
- Pay for the added insured(s) if necessary at checkout
How to Add AIs 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 redownload your COI to share
Once you add an AI, a copy of your certificate will be automatically sent to the provided email addresses for each additional insured.
Who Needs to be Added as an Additional Insured?
In most cases, an additional insured will inform you that they need to be added to your policy and provide you with the necessary information.
Some common examples of an additional insured include:
✅ Associations
✅ Cities
✅ Event organizers
✅ Landlords
✅ Promoters
✅ Retailers
✅ Venues
On the other hand, these individuals and groups are not and should not be added as additional insureds:
❌ You (the vendor)
❌ Businesses you own or operate
❌ Contractors
❌ Employees
❌ Family members
❌ Friends
❌ Other vendors
❌ Volunteers
If you’re unsure who should be listed, it’s a good idea to reach out to the party you’re working with for clarification.
Benefits of Listing an Additional Insured on Your Vendor Policy
Listing additional insureds increases protection for you and those you work with.
- Stay event-ready: Meet venue and event requirements effortlessly, opening the door to more vendor opportunities
- Simplify claims: Handle the claims process directly; no need to rely on the venue or event to step in for you
- Reduce risks: Ensure your clients and partners aren’t left footing the bill for accidents or claims tied to your booth or work
- Cover expenses: If something goes wrong, both you and your AI(s) are covered for legal fees, medical bills, repairs, and more
- Build trust: By adding AIs, you show professionalism and a willingness to share responsibility
FAQs About Vendor Additional Insureds
Who Should Be Listed as an Additional Insured?
Event organizers, venues, and cities are often listed as additional insureds for vendors. Generally, any party that you’re working with for an event, project, or sale should be considered for listing as an additional insured!
How Much Does it Cost to Add Someone as an Additional Insured?
It costs $15 to add a single additional insured, or $30 to add an unlimited number of additional insureds (depending on the policy).
Some policies may offer them for free. Costs depend on the industry and policy type.
