Named Insured vs. Additional Insured

Named Insured vs. Additional Insured on an Architects/Engineers General Liability Policy

What is the difference between being a named insured and an additional insured?  There are several differences when it comes to the General Liability policy.

First named insured has the rights at the ‘you’ in the policy.  The first named insured can cancel the policy, make policy changes, receive notices of cancellation, is responsible for payment of premium and receives any return premium.  The first named insured is listed on the declarations page of the policy.  There can be multiple named insured, such as other entities that are owned by your firm, but the first named insured has the rights as listed previously.

Additional insured’s that are automatically included in the policy include executive officers, employees and volunteers (not temporary workers).

Other additional insured’s, these typically have to be added by scheduled endorsement or blanket additional insured endorsement.  These additional insured as clients (as required by written contract), managers or lessors of premises, contractors or sub consultants and lessor of leased equipment.  In many cases the blanket additional insured endorsement, if it is in your policy, will cover these entities, but double check with your insurance company to verify.  It may be required that a scheduled additional insured is required.

One of the most important factors to remember on an additional insured is the additional insured must have some tie to the named insured.  There must be some sort of relationship between the named insured and additional insured.

Additional insured is not available on Professional Liability and Workers Compensation.  Check with your insurance agent to verify that it is available on your General Liability policy.  If you do have questions please call or email your Professional Underwriters agent.named insured

Previous Post
Risk Management Seminar – Did you miss it?
Next Post
Motorcycle Safety