Specific ADDITIONAL INSURED Endorsements - Frequently Asked

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No. Blanket endorsements can cover all entities required by contract, so you only need to be sure the contract lists the correct names.

Purchase orders count as contracts. If you issue purchase orders, you should have terms and conditions on them that require you to be additional insured. In this case you either need to make sure the endorsement provided does not require the contract be “executed by both parties” or ensure that even your purchase orders are signed by you both.

A direct contract is often unnecessary as long as the correct version of the blanket endorsement is provided. Endorsements can be triggered by any contract requiring you to be an additional insured, even if you did not enter into the contract directly. The CG2033 and similar endorsements should be avoided. 

Any other endorsements that apply “when you and such person or organization have agreed […]” or “with whom you have entered into a written contract […].” If the endorsement applies to anyone required under a contract, regardless of who entered into the contract, then specific endorsements are still unnecessary as long as the contract is correct. 

No. The term “Named Insured” applies to the names specifically listed on the declarations (or supporting supplementary schedule) which can only be entities related to the first Named Insured. Under no circumstance does any additional insured endorsement make an entity a “Named Insured.”

This is a fictitious term that is not defined in any standard General Liability policy or endorsement and carries no meaning within the insurance policy.

No. Often the specific and blanket endorsements are issued on the exact same policy form, with blanket wording written into the schedule of names. Even if this is not the case, other than being a “Named Insured” an entity can only be an “Insured.” There are not different levels or rights provided based on being specifically listed as an “Insured” or being so by virtue of a blanket endorsement.

No. Additional insured endorsements do not include notice of cancellation provisions.

This has been the case in the past but insurance companies have become increasingly frustrated with the volume of these unnecessary requests. Carriers are now charging for these endorsements, scrutinizing requests, requiring supporting information or outright refusing.

There are many reasons for this. Smaller contractors have smaller volumes of work and, therefore, fewer endorsements to request. Other contractors pay the cost, jeopardize their relationship with their insurance carriers or are unaware of their carrier’s exasperation. There are some brokers who fraudulently issue these endorsements on their own. There are still a very limited number of insurance companies that have not begun to object. 

Aside from the unnecessary and duplicative work on you by reviewing all of these endorsements, you could potentially be rejecting high quality subcontractors with high quality insurance policies over an unnecessary requirement. When an inferior contractor causes a loss and has an inferior insurance policy, you may not be adequately protected regardless of the additional insured endorsement.

Yes. Presumably you are reading this because the contractor you are working with was the lowest bidder for your work. This contractor most likely has the best insurance, at the best price, they can manage. If their insurance company is objecting to this request using a more expensive contractor, or forcing this contractor to move their insurance to a more expensive insurance company will certainly affect your budget.

"Frequently asked questions" are a listing of most commonly experienced questions and  the simplified versions of the most typical answers.  This should not be construed as legal advice.  Please refer to your policy for actual language, terms and conditions.