{"id":5091,"date":"2018-06-22T07:30:12","date_gmt":"2018-06-22T13:30:12","guid":{"rendered":"https:\/\/www.noyeshallallen.com\/blog\/?p=5091"},"modified":"2022-04-13T12:03:14","modified_gmt":"2022-04-13T18:03:14","slug":"adding-an-additional-insured-to-your-insurance-policy","status":"publish","type":"post","link":"https:\/\/www.noyeshallallen.com\/blog\/adding-an-additional-insured-to-your-insurance-policy\/","title":{"rendered":"Adding an Additional Insured to Your Insurance Policy"},"content":{"rendered":"<h3><strong>What is an Additional Insured?<\/strong><\/h3>\n<p>An Additional Insured (AI) is someone else who is added to your business insurance policy. That coverage might last one day, one job, or all year.<\/p>\n<p>Additional Insureds get two valuable kinds of protection:<\/p>\n<ul>\n<li>Defense \u2013 if someone sues your AI for something covered by your insurance, your policy steps in to defend them.<\/li>\n<li>Bodily Injury and Property Damage \u2013 your policy will pay on behalf of the AI for someone else\u2019s medical bills or property damage .<\/li>\n<\/ul>\n<p><iframe loading=\"lazy\" title=\"Adding an Additional Insured to your Maine Business insurance Policy\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/4COgL1Ja2tQ?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<h3><strong>Why Would I Agree to Cover Someone as Additional Insured? <\/strong><\/h3>\n<p>Usually, it\u2019s because you really want to sign a contract that requires it. Often, the contractual party with the most bargaining power is the one named AI. The weaker party adds them to their insurance. We didn\u2019t say it was fair, did we?<\/p>\n<p>For example, a landlord with a prime retail location might require tenants to add them as Additional Insured. Because you really want to be in that location, you could agree.<\/p>\n<p>Additional Insureds are also common in construction trades. The practice may reduce finger-pointing and expedite settlement of accidents and claims.<\/p>\n<h3><strong>What are the Disadvantages to Adding an Additional Insured to Your Policy?<\/strong><\/h3>\n<p>Adding an Additional Insured essentially shares your insurance with someone else. Their claims become your claims. Their troubles become yours. It\u2019s like a shared data plan, but with a maximum cost in the millions. What if your Additional Insured has a lot of claims?<\/p>\n<ul>\n<li>Your insurance company might raise your rates, refuse to renew, or even cancel your policy.<\/li>\n<li>Many commercial liability policies have an \u201cannual general aggregate\u201d limit. Each claim reduces the fund available to pay future claims. You may be left with a lot less insurance \u2013 less than your next job requires.<\/li>\n<\/ul>\n<h3><strong>How to Add an Additional Insured to Your Insurance Policy<\/strong><\/h3>\n<p>Contact your insurance agent if you want to add an AI to your policy. They should review the contract and your policy. They can advise you how this will affect your business and your insurance costs.<\/p>\n<h3><strong>Can My Insurance Company Refuse to add an Additional Insured?<\/strong><\/h3>\n<p>Yes. The insurance company will review your contract and exposure it creates. They may decide that it\u2019s too risky. Some insurance policies don\u2019t permit Additional Insureds at all. Professional liability policies are a good example. Each party should be responsible for the performance of their own professional activities.<\/p>\n<h3><strong>How Much Does it Cost to Add an Additional Insured? <\/strong><\/h3>\n<p>Additional Insured costs vary among policy types and insurers. Some business policies have \u201cblanket additional insured\u201d endorsements. For a flat price, these cover anyone that you contractually agree to include as AI. Otherwise, insurers charge for each Additional Insured, usually starting at $25.<\/p>\n<h3><strong>Are \u201cProof of Insurance\u201d , \u201cCertificate of Liability Insurance\u201d and \u201cAdditional Insured\u201d the Same Thing?<\/strong><\/h3>\n<p>No. Certificates and other proof of insurance forms are just that. They show that you have insurance at a moment in time. But if your policy doesn\u2019t include an Additional Insured, proof of insurance doesn\u2019t change that.<\/p>\n<p>However, Additional Insureds usually DO ask for Certificates of Insurance. They want to prove that they are Additional Insureds on your policy. Your agent will only provide this if your certificate holder has AI status.<\/p>\n<p>Is your business in the Portland Maine area? Do you need help with contracts, insurance requirements, additional insureds, leases or equipment rental? Contact a Noyes Hall &amp; Allen business insurance agent at 207-799-5541. We offer a choice among Maine\u2019s preferred business insurance companies. We can help you find the right fit for your business and your budget. We\u2019re independent and committed to you.<\/p>\n\n\n<p class=\"has-vivid-red-color has-text-color\"><strong>Was This Post Helpful?<\/strong><\/p>\n\n\n\n<p class=\"has-vivid-red-color has-text-color\">We provide this information to educate people about insurance options. We hope it was helpful. If so, would you help us in return? If you <a href=\"https:\/\/goo.gl\/n6nAml\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>provide an online review<\/strong><\/a>, it would help other people who are looking for help with their insurance. Thank you! <\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is an Additional Insured? An Additional Insured (AI) is someone else who is added to your business insurance policy. That coverage might last one day, one job, or all year. Additional Insureds get two valuable kinds of protection: Defense \u2013 if someone sues your AI for something covered by your insurance, your policy steps [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21,22],"tags":[72,32,6],"class_list":["post-5091","post","type-post","status-publish","format-standard","hentry","category-business-insurance","category-business-liability-insurance","tag-contractors","tag-doing-business-in-maine","tag-liability"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.noyeshallallen.com\/blog\/wp-json\/wp\/v2\/posts\/5091","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.noyeshallallen.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.noyeshallallen.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.noyeshallallen.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.noyeshallallen.com\/blog\/wp-json\/wp\/v2\/comments?post=5091"}],"version-history":[{"count":5,"href":"https:\/\/www.noyeshallallen.com\/blog\/wp-json\/wp\/v2\/posts\/5091\/revisions"}],"predecessor-version":[{"id":6343,"href":"https:\/\/www.noyeshallallen.com\/blog\/wp-json\/wp\/v2\/posts\/5091\/revisions\/6343"}],"wp:attachment":[{"href":"https:\/\/www.noyeshallallen.com\/blog\/wp-json\/wp\/v2\/media?parent=5091"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.noyeshallallen.com\/blog\/wp-json\/wp\/v2\/categories?post=5091"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.noyeshallallen.com\/blog\/wp-json\/wp\/v2\/tags?post=5091"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}