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Additional Insured

What is an Additional Insured?

An additonal insured is an optional endorsement on an insurance policy that does two things: (1) requires notification to the additional insured in the event of a midterm policy cancellation and (2) offers legal representation to the additional insured in the event of a claim or lawsuit wherein the insured (not the additional insured) is at fault.  The additional insured is NOT a coinsured and does not have insurance coverage through the insured’s policy.

 

What is Primary/Noncontributory Status?

Some contracts require the insured to provide primary and noncontributory status to an additional insured as part of the contract. The “primary” part of the clause means that the insured’s policy would respond as primary insurance coverage in the event of a claim without regard to any other coverage that might be considered primary. The “noncontributory” part of the clause means that the insured’s policy cannot require another party’s policy to contribute to payout in the event of a claim.

 

What is a Waiver of Subrogation?

Subrogation is the right of an insurance company to step into the shoes of the insured and try to recover damages paid out in the event of a claim from any other at-fault party.  A waiver of subrogation waives the right of the insurer to subrogate against any other party’s insurance company should a claim occur.

 


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