Explore commonly used personal finance terms.
An additional insured is an individual or entity added to an insurance policy to extend coverage to them. This is common in situations where multiple parties have an interest in a property or project. For example, a contractor may request to be named as an additional insured on a client’s policy. Additional insured status helps mitigate risks for all parties involved, as it provides legal protection under the primary policy in the event of a claim. The terms and extent of coverage vary, often requiring specific endorsements.
