If your business signs contracts — particularly in construction or service industries — you have likely encountered additional insured requirements. General contractors, property managers, and commercial clients frequently require vendors to list them as additional insureds on liability policies. Many businesses agree to this language without fully understanding the coverage implications.
An additional insured endorsement extends certain liability protections to the party listed, typically for claims arising out of your work or operations. For example, if your company’s work contributes to an injury or property damage claim and your client is named in the lawsuit, your policy may help defend them as well — depending on the endorsement wording and circumstances.
However, not all additional insured endorsements are the same. Some apply only to ongoing operations, while others include completed operations. Some limit coverage to what is required by written contract. The specific form attached to your policy matters. If your contract requires broader protection than your insurance provides, you may have unintentionally created a gap.
Before signing agreements that include indemnification and additional insured clauses, review them carefully. Make sure your policy endorsements align with contractual requirements. Proactively addressing these details helps prevent denied claims, protects your business relationships, and ensures you remain compliant and competitive when bidding projects
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