If you asked your subcontractor to name you as additional insured, you were probably expecting that the Certificate of Insurance you would receive would have the additional insured box checked. To your surprise, the Certificate of Insurance came back and the box “ADDL INSD” is not checked. What should you do?
What is Additional Insured?
Additional insured status is an important way that you can protect yourself from the mistakes made by your subcontractors on your jobs. In general, that Additional Insured status is indicated by the Additional Insured Box being checked on an Insurance Certificate. For example, a Roofing Contractor in Johnson City, Tennessee can give another person or company, like a General Contractor in Nashville, Tennessee, additional insured status by requesting their General Liability Insurance policy be endorsed (changed) to provide a level of insurance protection to the person or company should the General Contractor be sued because of a mistake made by the Roofing Contractor.
Even if the box is not checked, you still might be additional insured
It is possible that the box might not be checked but you might still be additional insured. This is because the additional insured box is only checked when you are specifically named as an additional insured. It is important to realize that there are other ways that you can be additional insured.
Which is Better?
You might be asking yourself, which is better, Blanket Additional Insured or Scheduled Additional Insured. We have a full blog answering that question right here.
Could it be a Fake Insurance Certificate?
What is Blanket Additional Insured?
Blanket additional insured refers to an endorsement in an insurance policy. This endorsement covers as additional insured a whole group of people associated with the named insured. The named insured is the person or business listed on the policy, the primary person the policy protects. This is usually a less expensive way for subcontractors to cover people as additional insured, and it can be just as effective in covering General Contractor. For a subcontractor, it is commonly preferred to naming someone as additional insured individually.
If you are in the category that allows you coverage under the blanket additional insured endorsement, you need an agreement in place. This agreement with the subcontractor requires that they name you as an additional insured on their General Liability Insurance policy. What that agreement needs to look like varies depending on the wording of the subcontractor’s insurance policy.
Will the COI Say That I Am Additional Insured Under Blanket Additional Insured?
If the policy has the blanket additional insured endorsement in place rather than naming you as additional insured, the additional insured box will not be checked on the Certificate of Insurance. Part of the reason for this is that the agent who prepares the Insurance Certificate cannot verify the necessary agreement in place for the blanket additional insured status to apply. With this in mind, the insurance agent cannot verify that you are additional insured on the Certificate of Insurance.
Just because the COI does not have the additional insured box checked, it does not mean that you do not have additional insured status. You should always check not only the Insurance Certificate, but the policy language itself, to see if it has additional insured endorsements and to see what they say. Even if the proper endorsement number is there, get the copy of the endorsement. Some have strange wording built in to the policy. An agent cannot check the additional insured box unless the policy specifically names you as an additional insured, but they can send you a copy of the endorsements and the COI.
Keep in mind that being named as an Additional Insured on a Certificate does not give you unlimited protection. There are limits. Read our blog What an Additional Insured Status DOES NOT Do for Me by clicking here.
Certificates of Insurance are Worthless
Yes, I said it right here and in essence they are. To clarify what I mean and to get a full understanding, click here to read our full blog about Worthless Certificates of Insurance.
Did you know that you can also get Blanket Additional Insured for Business Auto Insurance Policies?
Not only can you buy a Blanket Additional Insured Insurance endorsement on you General Liability Insurance policy, you can also get a Blanket Additional Insured Endorsement on your Commercial Auto Insurance policy. It works in similar fashion. The General Contractor who has hired you to do the roof on the the new building in Knoxville tells you that you also need to check the Additional Insured Box on the Insurance Cert for the Auto Liability section as well. If you have Blanket Additional Insured on the Auto Policy, he many already have the protection simply because he asked!
What is Included on a Certificate of Insurance?
Other than the Check Box that we have discussed here, the Certificate of Insurance has a lot of other information. For this purpose, we wrote the blog, What Does a Certificate of Insurance Include? Click here to read it.
Need more information about Certificates of Insurance?
Of course you do! For that reason, we created The Definitive Guide to Certificates of Insurance to give you the most comprehensive information available about Certificates of Insurance and dealing with Subcontractors. Just click below and learn more than you ever need to know about Certificates of Insurance!
Let's Get Social!
Healthcare expenses can be a significant burden on an individual’s finances. Health Savings Accounts (HSAs) are a valuable way to save money and receive tax
You’re probably reading this because you recently had a car accident or suffered some other kind of loss to one of your vehicles, your home
In early December 2022, a tragic apartment fire in Johnson City left many residents without a place to live. Thankfully, nobody was injured, but one