Additional Insured Terminology

Understand the role of an additional insured in insurance policies, who can be added to a policy as an extra protected party.

Within an insurance policy, an additional insured is an individual or company who receives the insured's benefits under the insurance policy. They will be listed in the declarations. For example, a mortgage company that insured property and has an insurable interest.

What is Additional Insured?

It is a type of status linked to the general liability insurance policy. It gives coverage to other groups or individuals not mentioned in the policy initially. Additionally, it requires an insured endorsement, which will be protected under the name insurer's policy. Later it can be claimed in the event they are sued.

Instead of using their policy, the additional insured can get coverage from your policy, leaving their own as a backup. 

By adding "Additional Insured" to a landlord's policy, coverage is extended to the property management company as well as the owner. Most property managers have no financial interest in the property, however, they can be insured against potential liability resulting from personal injury caused by fires, leaks, burglaries, etc.

Some Necessary Rudiments for Insurance

Essentially the agreement of the additional insured covers:

  • General Liability: It covers the claims that involve bodily injuries or any property damages that result from the property manager's operations.
  • Errors and Omissions: You are protected against mistakes in the property and manager's services in this cover. It is a common coverage involved in all things real estate. 
  • Compensation: If your property management company and its employees are based in another city, it must have workers' compensation insurance. It covers all medical expenses of the employee for work-related injuries. 

Landlord Insurance Glossary Index

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