Additional insured endorsements, explained
Customers, landlords and general contractors routinely ask to be added as additional insureds on your policy. Here is what that status does, which endorsements are commonly used, and how to match a contract's requirements without guessing.
What additional insured status does
An additional insured is a person or organization added to your liability policy by endorsement, giving them rights under your policy for claims arising out of your work, products or premises, as the endorsement defines. If an injured worker sues the property owner over your work, the owner can tender the claim to your carrier as an additional insured.
A certificate of insurance is not the endorsement. The standard ACORD 25 certificate states that it is issued as a matter of information only and confers no rights upon the certificate holder, and that if the holder is an additional insured, the policy must be endorsed. The coverage comes from the endorsement on the policy; the certificate only reports it.
Additional insured coverage is not unlimited. It applies only to the extent the endorsement provides, and it shares your policy's limits.
Endorsements you'll see in contracts
Insurance Services Office (ISO) forms are widely referenced, and many carriers use their own versions with different wording. Contracts often name a specific form number.
CG 20 10 — ongoing operations
Owners, lessees or contractors, for liability arising from your ongoing operations performed for them.
CG 20 37 — completed operations
Introduced to restore coverage for additional insureds after your work is complete — important for construction defect and injury claims that surface later.
CG 20 11 — managers or lessors of premises
Landlords and property managers, for liability arising from the premises you lease.
CG 20 26 — designated person or organization
A named party, for liability caused in whole or in part by your acts or omissions.
CG 20 15 — vendors
Distributors and retailers that sell your products.
Blanket endorsements
Automatically add anyone you've agreed in a written contract to add, so you don't need to schedule each one.
Primary and noncontributory versus waiver of subrogation
Primary and noncontributory (e.g., CG 20 01)
- Your policy pays first for the additional insured
- Your carrier won't seek contribution from the additional insured's own policy
- Generally applies only where a written contract requires it
- Does not create additional insured status by itself
Waiver of subrogation (e.g., CG 24 04)
- Your carrier gives up its right to recover from the scheduled party
- Applies only to the extent you waived rights before the loss
- Often required on general liability, auto, umbrella and workers' comp
- Each line of coverage needs its own waiver wording
Limits on additional insured coverage
ISO's 2013 revisions to its additional insured endorsements added three limits that also appear in many carrier forms:
- Coverage applies only as permitted by law.
- If coverage is required by a contract, it is no broader than the contract requires.
- The limits available to the additional insured are the lesser of the contract requirement or your policy limits. If a contract requires $1 million and you carry $2 million, the additional insured may receive only $1 million.
That makes the contract's insurance section the starting point. Vague wording such as "name owner as additional insured" may produce narrower coverage than either party expects.
Washington construction contracts
Washington's anti-indemnity statute (RCW 4.24.115) makes an indemnity clause in construction contracts void and unenforceable to the extent it requires you to indemnify another party for its sole negligence, and enforceable only to the extent of your own negligence when both parties are at fault. Waiving your industrial insurance immunity under Title 51 must be expressly stated and mutually negotiated. Because additional insured coverage applies only as permitted by law, these rules can affect it too. Have your attorney review indemnity and insurance clauses together.
Matching a contract's insurance requirements
Send us the insurance section
Before you sign, if possible. We compare the required endorsements, limits and wording with your policies.
Find the gaps
Missing completed operations, primary wording on the umbrella or a waiver on workers' comp are common.
Endorse the policy
We add blanket or scheduled endorsements with your carrier. Some changes add premium.
Issue the certificate
The certificate then reflects the endorsements actually on your policy, with copies of the endorsements when the holder asks.
Additional insured questions
Is a certificate holder the same as an additional insured?
No. A certificate holder receives proof of your coverage. An additional insured has rights under your policy, which requires an endorsement.
Does adding an additional insured cost extra?
Sometimes. Many policies include blanket additional insured endorsements at no extra charge; others charge per party or for broader wording such as completed operations or primary and noncontributory.
Do additional insureds get their own limits?
No. They share your policy's limits, and coverage may be capped at the amount the contract requires.
Why does the contract ask for completed operations?
Claims involving construction work can surface after the job is finished. An ongoing operations endorsement alone typically does not cover the additional insured once your work is complete.
Does my umbrella cover additional insureds?
Only if its wording extends to them. Many umbrellas follow the primary policy's additional insureds, some only when a written contract requires it. Contracts that require primary and noncontributory coverage often mean the umbrella too.
Can I add an additional insured to my workers' comp policy?
Not in the usual sense. Contracts typically ask for a waiver of subrogation on workers' comp instead. In Washington, most employers' workers' comp is through the state fund (L&I), so the waiver usually applies to the stop-gap employers' liability coverage; ask us what your policy can provide.
Have a contract to review?
Email the insurance requirements to info@firstunderwriters.com or request a certificate and we'll match the wording to your policy.
This page is a general summary for education. It is not legal or coverage advice, a statement of coverage, an offer or a binder. Endorsement wording varies by carrier and edition; review contract terms with your attorney. Coverage is governed by the terms, conditions and exclusions of the policies issued and is subject to underwriting.