Additional Insured

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DEFINITION of 'Additional Insured'

A type of status associated with general liability insurance policies that provides coverage to other individuals/groups that were not initially named. After endorsement, the additional insured will then be protected under the named insurer's policy and can file a claim in the event that they are sued.

INVESTOPEDIA EXPLAINS 'Additional Insured'

For example, a business may ask a contractor to add them as an additional insured in their general liability policy. This is to protect the business in the event of any legal claims arise as a direct result of the contractor's work/presense.

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