Additional Coverages in Insurance

What is Additional Coverages in Insurance?

Additional coverage is an endorsement of an original policy that allows an individual or group of people other than the policyholder to be insured by the policy. Typically, additional coverage is added to general liability insurance guidelines.

The insurance provided to the additional person/s could last for a single occasion or could be ongoing for the entirety of the policy.

The individual/s being added to the policy must meet a certain set of requirements before they can be accepted and added to the policy.

Once accepted, the additional insured person/s will be granted full protection under the policy, allowing them to file claims if they happen to be sued.

Additional coverages are often called coverage extensions, additional insured, and extended coverages.

Bear in Mind: The cover the additional insurer receives will be limited compared to that of the original policyholder.

How to add additional cover to your policy

• Consult an insurance agent to look over your policy to analyze the possibilities of adding additional insurers, as well as the level cover that can be provided.
• With your insurance agent’s help, select and fill out an additional coverage endorsement form.
• Discuss with your agent what restrictions may occur for the add-on insurer.

When to add additional cover to your policy

• If you are a business owner recruiting new partners, they may ask to be added as an additional insurer before committing to any contracts.
• Businesses want to know that partners/contractors can compensate them if any lawsuits are filed.