What an additional insured endorsement is, and what to collect

The plain-language version

An additional insured is a person or organization that is not automatically insured under a policy but is added at the request of the policyholder, often because a contract requires it. In construction, it is commonly paired with an indemnity clause in the subcontract. If the indemnity promise can’t be enforced for some reason, the additional insured may still be able to make a claim directly under the sub’s policy.

Scheduled versus blanket endorsements

Either can work. What matters is that the endorsement’s terms line up with what your subcontract asks for. If you aren’t sure, that is a question for your insurance agent or attorney.

• Scheduled (named) endorsement: your company is listed by name on the endorsement page. Easy to verify.
• Blanket (automatic) endorsement: grants insured status to anyone the policyholder is required by written contract to add. It may only apply to certain types of contracts or entities, so the contract wording matters.

What to collect

1. The certificate of insurance with the additional insured box marked for general liability (and auto or umbrella if your contract requires).
2. A copy of the endorsement page or pages, with the form number and edition date visible.
3. For a scheduled endorsement, confirm your legal name is listed. For a blanket endorsement, confirm your subcontract is a written contract that requires additional insured status.
4. Any other endorsements the contract requires, such as primary and noncontributory wording or a waiver of subrogation.

Primary and noncontributory, in one paragraph

When a contract requires the sub’s liability insurance to be primary and noncontributory, it is setting the order in which policies respond to the same loss: the sub’s policy pays first, without asking other policies that also claim to be primary to share the cost. It is a separate requirement from additional insured status, and is often handled by its own endorsement.