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\u201cAdditional Insured,\u201d usually refers to a person or entity added to the policy by an endorsement. In general, endorsements will provide cover to the people or businesses named on them only for claims arising out of the acts or omissions of the primary insureds.
Additional insured status carries important rights, such as the right to file a claim for damages directly against the primary insured's insurance carrier; the right to a legal defense against third-party claims; and coverage for any damage caused \u2013 the additional insured enjoys these rights while keeping its own loss ...
Additional Named Insureds may include people like physicians who are primary owners of the Named Insured entity; subsidiaries; and perhaps joint ventures in which the Named Insured owns 50 percent or more of voting stock.
Additional Insured \u2014 a person or organization not automatically included as an insured under an insurance policy who is included or added as an insured under the policy at the request of the named insured.
One of the most common reasons for providing additional insured coverage is a contractual requirement. When one business performs work for another, the hiring company often demands coverage as an additional insured under the other party's general liability policy.

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Key Takeaways. An additional insured extends liability insurance coverage beyond the named insured to include other individuals or groups. An additional insured endorsement protects the additional insured under the named insurer's policy allowing them to file a claim if sued.
Costs of Additional Insured The cost of adding an additional insured is typically low, compared to the costs of the premium. Insurance company underwriting departments often consider the additional risk associated with additional insureds as marginal.
First-party coverage. As an additional insured, Party Two obtains direct first-party protection with the insurer's declarative duty to defend Party Two, not merely an expectation of reimbursement for the judgment amount and the defense costs under Party One's contractual coverage (which has some strings attached).
Examples of additional insured Janitorial and floor waxing businesses can create slippery situations where someone might take a spill. A building or business that hires cleaners may require being added as an additional insured on the cleaner's general liability insurance.
First-party coverage. As an additional insured, Party Two obtains direct first-party protection with the insurer's declarative duty to defend Party Two, not merely an expectation of reimbursement for the judgment amount and the defense costs under Party One's contractual coverage (which has some strings attached).

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