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Business Insurance · GL Contract Clauses
Additional insured status, explained.
When a contract says the other party must be named as an 'additional insured,' it means your liability policy has to protect them too — not just you. It is the most common insurance requirement in construction and vendor contracts, and the details (ongoing vs. completed operations, blanket vs. scheduled) decide whether the coverage actually does what the contract intends.
At a Glance
- Type
- GL endorsement
- Common forms
- CG 20 10 / 20 37
- Scope
- Ongoing + completed ops
- Pairs with
- P&NC + waiver
Quick answer
An additional insured is a person or organization — other than you, the named insured — who is added to your liability policy so that your coverage protects them too, usually for liability arising out of your work or your premises. IRMI defines it as a party protected under another entity's policy in addition to the named insured. It is added by endorsement, and the exact protection depends on which endorsement is used and whether it covers ongoing operations, completed operations, or both. General contractors, landlords, clients, and municipalities routinely require it, almost always alongside primary and non-contributory wording and a waiver of subrogation. Being an additional insured is not the same as being a 'certificate holder.' Ellie Insurance Group is an independent Florida agency (founded 2014, Tampa) that reviews your contracts and adds the correct additional insured endorsement — blanket or scheduled — so your certificate matches the requirement.
Who needs this
Who gets asked to add additional insureds
Subcontractors & trade contractors
General contractors require the GC (and often the owner) to be added as additional insureds for both ongoing and completed operations.
Tenants
Commercial leases require the landlord and property manager to be additional insureds on the tenant's GL.
Vendors & suppliers
Retailers and large clients require vendor GL policies to name them as additional insureds.
Service providers on client sites
Janitorial, security, staffing, and maintenance firms are routinely required to add the client.
Contractors on public projects
Municipalities, schools, and hospitals require themselves added as additional insureds with specific forms.
Anyone financing or leasing equipment
Lessors and lenders may require additional insured or loss-payee status tied to the financed property.
What it covers
What additional insured status does
It extends your policy's protection outward to another party for the exposure you agreed to cover — the scope depends entirely on the endorsement used.
- Extends your coverage to the other party
The additional insured gains protection under your GL policy for liability arising out of your work or premises.
- Ongoing operations
Protects the additional insured for claims arising while your work is in progress (commonly via CG 20 10).
- Completed operations
Protects them for claims arising after your work is done (commonly via CG 20 37) — critical in construction.
- Blanket or scheduled
Blanket applies to any party you're required by written contract to add; scheduled names each party.
- Defense for the additional insured
Where covered, your policy can provide the additional insured a defense against a covered claim, subject to policy terms.
- Coordinates with P&NC and waiver
Designed to work alongside primary and non-contributory wording and a waiver of subrogation.
What it doesn't cover
What additional insured status is NOT
Additional insured coverage is frequently misunderstood. These limits matter at claim time.
- It is NOT the same as being a certificate holder (a certificate grants no coverage)
- It generally does not cover the other party's sole, independent negligence
- It does not raise your policy limits — the other party shares your limits
- It does not control payment order (that's primary & non-contributory)
- It does not waive your insurer's recovery rights (that's the waiver of subrogation)
- It is not automatic — the correct endorsement must be added
- Ongoing-operations forms may not cover claims after your work is complete
- It does not override the underlying policy's exclusions
Cost drivers
What affects availability and cost
Ongoing vs. completed operations
Completed-operations coverage extends longer-tail exposure and can affect pricing and appetite.
Blanket vs. scheduled
Blanket endorsements are efficient but priced differently than naming each party.
Carrier and class of business
Availability and breadth of AI forms vary by carrier appetite and operation type.
Specific form requirements
Contracts may demand particular ISO forms or edition dates that not every carrier offers.
Breadth of wording
Very broad AI language can affect underwriting and premium.
Umbrella extension
Requiring AI status to follow up the excess tower can affect the umbrella's terms.
Quote checklist
What we'll need to add it correctly
- The contract or insurance-requirements exhibit
- Which parties must be added as additional insureds
- Whether ongoing operations, completed operations, or both are required
- The specific ISO form / edition date the contract demands, if any
- Whether primary & non-contributory and a waiver are also required (they usually are)
- Current general liability declarations and endorsement schedule
The distinction that trips everyone up
Additional insured vs. certificate holder
A rejected certificate almost always comes down to confusing these two. They are not the same thing.
- Certificate holder
Simply receives a certificate of insurance as evidence that a policy exists. Gets NO coverage under the policy — it is informational only.
- Additional insured
Is actually granted coverage under your policy by endorsement, for liability arising out of your work or premises. This is what contracts require.
- Ongoing operations (CG 20 10)
Protects the additional insured for claims arising while your work is in progress.
- Completed operations (CG 20 37)
Protects them for claims arising after your work is finished — often required in construction contracts.
Definitions follow standard industry usage (IRMI); form numbers reflect common ISO forms and can vary by carrier and edition. Confirm the exact endorsement, scope, and edition date with your agent so it matches your contract before you rely on it.
Contract asking you to name someone as additional insured?
FAQ
Frequently Asked Questions
- An additional insured is a party — other than you — who is added to your liability policy so that your coverage extends to protect them, typically for liability arising out of your work or your use of premises. IRMI defines an additional insured as a person or organization covered under an insurance policy in addition to the named insured. It is added by endorsement, not just by listing them on a certificate.
- No — this is the single most common point of confusion. A certificate holder simply receives evidence that a policy exists. An additional insured is actually granted coverage under the policy by endorsement. Listing someone as a certificate holder gives them no coverage; only the endorsement does. Contracts that require additional insured status are not satisfied by a certificate alone.
- Ongoing operations coverage protects the additional insured for claims arising while your work is in progress. Completed operations coverage protects them for claims arising after your work is finished — for example, a defect that causes injury months later. The endorsements differ: CG 20 10 commonly addresses ongoing operations and CG 20 37 addresses completed operations. Many contracts require both, so both endorsements may be needed.
- A blanket endorsement automatically grants additional insured status to any party you are required by written contract to add, without naming each one. A scheduled endorsement names each specific party. Blanket wording is efficient for businesses that sign many contracts, but the trigger language and scope must be reviewed to be sure it meets the contract's requirements.
- Often it is available at little or no additional premium, but it depends on the carrier, the class of business, and whether broad or completed-operations forms are required. Broader endorsements can affect pricing. We confirm cost and availability with the carrier before you rely on it.
- Generally the intent is to cover them for liability arising out of your work or operations — not for their sole, independent negligence. Modern ISO additional insured forms often limit coverage to the extent permitted by law and to liability caused by your acts or omissions. The precise scope depends on the endorsement wording, which is why matching the form to the contract matters.
- The three work as a package. Additional insured status extends coverage to the other party; primary and non-contributory wording makes your policy pay first; and the waiver of subrogation stops your insurer from recovering from them afterward. Together they transfer the risk of your work fully onto your policy, which is exactly what a general contractor or landlord is trying to accomplish.
Keep reading
Explore related coverage
General Liability
The policy the AI endorsement attaches to.
Primary & Non-Contributory
Almost always required together.
Waiver of Subrogation
The third piece of the contract trio.
Certificate of Insurance
How AI status is evidenced — and why it's not the same as a certificate holder.
Contractors Insurance
Where AI requirements appear most.
Umbrella Liability
Extending AI status up the tower.
Sources
Authoritative references
Coverage descriptions and regulatory figures on this page are general summaries reviewed against the references above and are not a statement of coverage, legal advice, or a guarantee of eligibility or price. Last reviewed . Requirements and policy terms change — always confirm current rules with the relevant agency and verify coverage against the actual policy and a licensed agent.
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Next step
Get the correct additional insured endorsement in place
Send the contract and your current general liability declarations. An Ellie agent will confirm whether ongoing operations, completed operations, or both are required, add the correct blanket or scheduled endorsement, and issue a certificate that reflects true additional insured status — not just a certificate holder.