An additional insured is a person or organization that an insurance policy does not automatically cover but that the policyholder adds, usually through an endorsement, at the policyholder's request. The term appears most often in landlord-tenant relationships, where a lease asks the tenant to add the property owner to a renters or liability policy, and in construction contracts, where owners and general contractors require the same from the parties working for them.
What is an additional insured?
The International Risk Management Institute (IRMI) defines an additional insured as "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." In practice, the additional insured meaning comes down to borrowed protection: you gain limited coverage under someone else's policy for claims connected to that person's actions, without owning the policy yourself.
The policy declarations list the named insured, the "you" the policy addresses. IRMI's commentary on insured status puts the contrast plainly: the named insured "has broad rights and coverage under the CGL policy," while a party that gains insured status through its relationship to the named insured "has qualified or limited coverage as an insured."
A contract alone does not create coverage, and a certificate generally does not create it. In most states, the policy must contain either a scheduled endorsement or an automatic-status endorsement whose conditions the party satisfies. New York's Office of General Services notes in its insurance requirements guidance that the endorsement "does not add an individual, corporation, or governmental entity to the list of Named Insureds." If your lease says you should be an additional insured and the tenant's policy contains no qualifying endorsement, you usually have no coverage.
Named insured vs. additional insured
The two designations carry distinct rights and obligations, along with different coverage. Here is how they compare:
- Feature | Named insured | Additional insured
- Policy ownership | Owns the policy; can modify or cancel it | No ownership or control
- Scope of coverage | Broad coverage for its own liability | Limited to liability caused, in whole or in part, by the named insured's acts or omissions
- Premium duties | Pays the premium | Pays nothing
- Cancellation notice | First named insured receives 10 days' notice for nonpayment, 30 days for other reasons under ISO Common Policy Conditions | No automatic notice; requires a separate notice-of-cancellation endorsement
- How status arises | The declarations page names the insured | The named insured asks the insurer to add the party by endorsement
The cancellation gap deserves attention. PropertyCasualty360's analysis of common policy conditions explains that under ISO form IL 00 17, the insurer mails cancellation notice only to the first named insured. An additional insured whose tenant stops paying premiums may never hear the policy lapsed.
How additional insured status works: the endorsement
An endorsement is a document the insurer attaches to the policy to change its terms. Insurers grant additional insured status through scheduled or automatic-status endorsements, and the exact ISO form determines who qualifies and whether coverage applies during or after the work.
Blanket vs. scheduled endorsements
IRMI describes the additional insured endorsement as "a policy endorsement used to add coverage for additional insureds by name, for example, mortgageholders or lessors," and warns that "there are a number of different forms intended to address various situations, some of which afford very restrictive coverage to additional insureds."
Scheduled endorsements name each additional insured individually. A party has status only if the endorsement's schedule names it; forms CG 20 10 and CG 20 37 work this way.
Blanket endorsements (formally, automatic-status endorsements such as CG 20 33 and CG 20 38) extend status to any party the named insured has agreed in writing to add. The insurer does not need to name anyone in advance, which is convenient for contractors juggling many contracts. But the written contract must exist before the loss occurs. In Suffolk Construction Co. v. Illinois Union Insurance Co., the Massachusetts Appeals Court found no blanket coverage where the parties never executed a signed written agreement. Blanket forms also create a notice problem: as IRMI observes, "insurers can't provide notice of cancellation to as yet unidentified additional insureds," so a party that needs guaranteed cancellation notice should require the insurer to name it specifically and attach a notice-of-cancellation endorsement.
ISO endorsement forms
Insurers and courts have documented these mechanics most thoroughly in commercial general liability (CGL) insurance, the policy type where these endorsements originated. The endorsement amends the policy's "Who Is An Insured" section to bring the new party in, but only for a defined slice of liability. It does not raise the policy's limits: the CG 20 10 12 19 form states that the endorsement "shall not increase the applicable limits of insurance." Every additional insured shares the same pool of coverage with the named insured.
The PropertyCasualty360 July 2025 review of ISO general liability additional insured endorsements identifies the two workhorse forms as CG 20 10 and CG 20 37, both currently in their December 2019 editions (CG 20 10 12 19 and CG 20 37 12 19).
CG 20 10 covers bodily injury and property damage. It also covers personal and advertising injury "caused, in whole or in part, by" the named insured's acts or omissions while work is still underway. Coverage excludes injury or damage that occurs after contractors complete all work or after someone other than another contractor or subcontractor working on the same project puts the relevant portion to its intended use. CG 20 37 picks up where CG 20 10 stops, covering bodily injury and property damage within the products-completed operations hazard after contractors finish the work. It does not cover personal and advertising injury.
Because each form covers only one phase, a party that wants protection through and after a project needs both. Amwins states it directly: "If an additional insured requires additional insured status for the project, the contractor will need BOTH the CG2010 and the CG2037 endorsements in order to comply."
Why landlords require additional insured status on renters insurance
When a tenant's policy names a landlord as an additional insured, the landlord gains direct access to that policy when a claim arises from the tenant's actions. If something the tenant did injures a guest who sues both tenant and landlord, the tenant's insurer defends the landlord too, rather than the claim landing first on the landlord's own coverage. Through the lease, the landlord and tenant assign the cost of tenant-caused liability to the tenant.
Requiring renters insurance at all is common: Zillow's 2024 Consumer Housing Trends Report, which drew on responses from more than 36,000 renters, found 32% say their landlord or property manager requires it, rising to 42% in buildings with 50 or more units.
True additional insured status on a personal renters policy is a different matter. Most lease clauses allow tenants to satisfy the requirement by adding the landlord as an interested party (also called an additional interest), which costs nothing and provides only policy notices, not liability coverage, as MoneyGeek's comparison of the two designations explains. Genuine additional insured status on renters policies is rare; an April 2024 IA Magazine carrier survey found no surveyed carrier would add an HOA as an additional insured to a renters policy, offering only certificate holder or additional interest listings instead. Your own landlord liability coverage is what actually pays when a tenant or visitor is injured and holds you responsible, so additional insured status on a tenant's policy is a supplement, not a substitute.
Landlords are far from the only requestors. All of these requirements share a common purpose: contractual risk transfer, where one party uses a contract to shift the cost of certain liabilities onto another party's insurer. Project owners and general contractors require it from subcontractors on virtually every construction contract. Manufacturers name their retailers and distributors. Event venues require it from vendors, while equipment lessors require it from lessees.
What an additional insured is and is not covered for
Additional insured coverage is narrower than the named insured's coverage.
The insurer covers the additional insured only when the named insured or someone acting on its behalf contributed to the injury. Since ISO's 2004 revision replaced "arising out of" with "caused, in whole or in part, by," the endorsement excludes the additional insured's sole negligence. ISO stated the intent openly: the wording will "prevent any alleged coverage for the additional insured's sole negligence," as IRMI's analysis explains. The New York Court of Appeals confirmed the reading in Burlington Ins. Co. v. NYC Transit Auth. (2017), holding the coverage applies to injury proximately caused by the named insured. If a defect in your property injures a visitor and your tenant or contractor did not contribute, their policy owes you nothing. The insurer protects the additional insured when both parties contributed to the injury, even if the additional insured bears the larger share of fault.
The named insured and additional insured share the same policy limits. The 2013 ISO revisions remain in the current 12 19 editions and cap payment at the lesser of the amount the contract requires or the policy's available limits. They also provide that coverage will not be broader than the contract requires, as IRMI's review of the 2013 endorsements explains. A large claim against the named insured can drain those policy limits before the additional insured collects anything.
The duty to defend, on the other hand, is a genuine benefit. An insurer's duty to defend is broader than its duty to indemnify, and a complaint triggers that duty when it shows the mere potential for coverage. The New York Court of Appeals held in BP A.C. Corp. v. One Beacon Ins. Group (2007) that "the obligation of an insurer to provide a defense to an additional named insured under the policy exists to the same extent as it does to a named insured."
Additional insured vs. certificate holder
A certificate holder generally receives a certificate of insurance (COI) and no coverage rights. The ACORD certificates FAQ states that a COI "does not serve to provide, endorse, amend, extend, or alter any terms of an insurance policy." The ACORD 25 certificate itself, in its current 2025/12 edition approved by the New York DFS, carries the warning: "THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER."
Courts have enforced that disclaimer against parties who relied on certificates. The Texas Supreme Court in Via Net v. TIG Insurance Co. (2006) wrote that "those who take such certificates at face value do so at their own risk." In most states, a COI listing you as an additional insured is not enough; the policy or a matching endorsement controls.
Washington recognizes a narrow exception. Washington allows a certificate to confer insured status when an insurer's agent specifically issues it and its specific statement controls over the boilerplate, despite the general disclaimer, under the Washington Supreme Court exception.
So use the COI as a starting point, then verify the endorsement itself. First, verify that the insurer attached an additional insured endorsement, such as CG 20 10 or CG 20 37, or that an automatic-status form has a matching written contract, and confirm that its trigger language and covered operations match what your lease or contract requires. Then check that the limits meet your contractual minimum, remembering the insurer pays the lesser of the contract-required amount or the available limits.
How to add an additional insured to your policy
If a landlord or lender has asked you, the named insured, to add them, the process is short. The same steps apply when a client makes the request:
- Contact your insurer or agent and state that a contract requires you to add an additional insured. Specify whether the contract calls for ongoing operations, completed operations, or both.
- Provide the party's contact details, including its full legal name and mailing address, and provide a copy of the contract clause so the endorsement matches what the contract requires.
- Confirm which endorsement the insurer will attach and ask for a copy of it, not only the certificate.
- Request a certificate of insurance naming the party, and send both the COI and the endorsement copy to the requesting party.
For tenants adding a landlord to a renters policy, ask your carrier whether it offers true additional insured status or only an interested party listing; most leases accept the latter, which carriers add at no charge. The cost is modest either way.
On commercial policies in particular, the carrier may also review the named insured's loss history, meaning prior claims on record, before agreeing to add an additional insured or setting the final price, since a heavier loss history can make the endorsement more expensive or, in some cases, harder to obtain.
Does adding an additional insured affect your premiums?
Often barely. On renters policies, an interested party listing is free. When carriers offer true additional insured status on personal policies, documented charges run from $7 per year at American Family to $25 to $30 per year for Safeco's Extended Liability endorsement.
Commercial pricing varies by carrier and form. Fremont Mutual's 2022 commercial package manual charges $50 flat for a scheduled CG 20 10, $100 for a scheduled CG 20 37, and $250 for the automatic-status CG 20 33 or CG 20 38. Hiscox's Pennsylvania filing effective April 2024 adds the first scheduled additional insured at no charge, $50 for each additional one, and prices its automatic endorsement at 15% of premium. Blanket status and primary-and-noncontributory wording carry the larger surcharges because they broaden the insurer's exposure.
Claims create the larger financial exposure. Every dollar an insurer pays on behalf of an additional insured comes out of your policy limits, since the endorsement never increases them. A serious additional-insured claim can exhaust the policy limits you were counting on for yourself.
Related protections paired with additional insured status
Commercial leases and construction contracts rarely stop at additional insured status. Related contract protections often accompany it, and IRMI notes each serves a distinct purpose.
Additional insured status covers third-party claims. Primary and noncontributory language dictates the order in which policies pay. With it, the named insured's policy responds first and will not seek contribution from the additional insured's own insurance; ISO implements it through endorsement CG 20 01. Without it, insurers can fight over priority. Insurance Journal reported one case where missing primary-and-noncontributory wording caused a $2M claim to be split 50/50 between two policies.
A waiver of subrogation blocks the insurer from clawing money back afterward. After paying a loss, an insurer normally inherits its insured's right to sue whoever caused it. A waiver of subrogation, via ISO form CG 24 04 on CGL policies, surrenders that right toward the scheduled party. The parties must agree to it in writing before the loss, as IRMI's guidance on waivers explains.
An indemnity or hold-harmless clause is the contractual promise itself, one party agreeing to absorb specified liabilities of the other. Additional insured status backs that promise with an insurer's balance sheet, which matters if the promising party cannot pay.
Contracts often combine these provisions because each closes a different gap. For help checking whether your lease and landlord policy use compatible additional-insured terms, contact us today to learn more about your coverage options.
Lenders and equipment lessors often add a related property-side designation as well: a loss payee, which directs part of a property loss payment directly to the named party rather than solely to the insured owner. Unlike additional insured status, this designation concerns property loss proceeds rather than liability defense, so it operates on a separate track within the policy.
FAQ
What does it mean to be listed as an additional insured?
You receive limited coverage under someone else's liability policy through an endorsement the insurer adds at the policyholder's request. Your protection applies only when the policyholder's acts or omissions cause a claim at least in part, and you share the policy's limits without paying its premium.
What is the difference between a named insured and an additional insured?
The named insured owns the policy and has broad coverage. That party pays the premium and controls changes and cancellation. An additional insured has no control over the policy and pays nothing. That party receives no automatic cancellation notice and has coverage only for liability tied to the named insured's conduct.
Why do landlords ask to be an additional insured on renters insurance?
It gives the landlord defense and coverage under the tenant's policy when a claim stems from the tenant's actions, shifting that cost off the landlord's own insurance. In practice, most carriers only offer landlords an interested party listing on renters policies, which provides policy notices rather than liability coverage.
How do I add an additional insured?
Ask your insurer or agent and supply the party's legal name and address. Include the contract clause requiring the addition, and confirm the endorsement matches the contract. Then send the requesting party a COI plus a copy of the endorsement itself.
What is excluded from additional insured coverage?
Your own sole negligence. Under current ISO wording, coverage requires the named insured to have caused the injury in whole or in part, and courts including New York's highest have refused coverage where the additional insured alone was at fault. Standard endorsements also commonly exclude professional services and cap payment at the lesser of contract-required or available limits.
What is the difference between blanket and scheduled endorsements?
A scheduled endorsement names each additional insured in the form; only listed parties have status. A blanket (automatic-status) endorsement covers any party the named insured agreed in a written contract that both sides signed before the loss to add. Blanket forms typically cover ongoing operations only and cannot deliver cancellation notice to unnamed parties.
Is a certificate holder the same as an additional insured?
A certificate holder usually receives only an informational document; the ACORD 25 form states it confers no rights. In most states, additional insured status requires a qualifying policy provision or endorsement, so always review the policy and endorsement rather than relying on the certificate. Washington recognizes a narrow exception for certain certificates issued by an insurer's agent.
Will adding an additional insured raise my premium?
Usually by little or nothing. Interested party listings on renters policies are free, true additional insured endorsements on personal policies run roughly $7 to $30 per year when carriers offer them, and scheduled commercial endorsements typically cost $0 to $100 flat. Blanket endorsements cost more, up to $250 flat or 10% to 15% of the liability premium depending on the carrier.
.jpg)
.png)