What is Blanket Additional Insured? and why do you need it?
A blanket additional insured endorsement can added to your General Liability Insurance.
By having blanket additional insured you can request to have all your clients or customer listed as additional insured on your policy with no additional charge.
The cost to add additional insured varies by insurance company but can be as little as $100.00 or at most $1,250.00
Regardless of cost it is typically far cheaper to pay for the blanket additional insured as opposed to each required party. Especially on larger projects the number of entities you might need to list as additional insured can be significant.
One of our clients had to name over 50 different entities as additional insured on their certificate. If they had not had a blanket endorsement the cost to add each entity would have made the entire job unprofitable.
What is additional insured?
Additional insured status is typically requested by a general contractor or homeowner to have certain rights of coverage under your general liability policy. It’s commonly viewed as backup for the indemnity agreement you signed to work for them as well.
The attached form is the insurance industry standard form used to provide additional insured. CG2010 this provides additional insured for on going operations and the CG2037 provides additional insured status for completed operations.
Why is all of this necessary?
The short answer is LAWSUITS.
If you are working for a General Contractor and are negligent or responsible for a loss the additional insured status protects the General Contractor. In the same way your business can be protected if you are hiring sub-contractors.
3 Key things to keep in mind with additional insured.
1. Just because you are named as additional insured doesn’t mean you don’t need insurance
2. Be sure to review the contract, as typically their is a contract as part of the documents requesting additional insured status.
3. Always ask for a copy or give a copy of the additional insured endorsement.
If you aren’t sure if your policy has blanket additional insured or are interested in learning more schedule a call.