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What Is an Additional Insured?

An additional insured is a person or organization, other than you, that is given protection under your insurance policy. The Insurance Bureau of Canada defines it as "a person other than the named insured who is protected by the terms of the policy." For snow contractors, it usually means a property owner, property manager or municipality asking to be added to your general liability policy as a condition of the contract.

Why Clients Ask for It

If someone slips on a lot you service, they may sue both the property owner and you. As an additional insured, the owner can look to your policy for protection against claims arising from your work. IRMI, a US reference, notes that additional insured status is often paired with indemnity agreements and gives the requesting party direct rights under the named insured's policy.

Every published snow tender we reviewed asked for it:

  • the Township of Otonabee-South Monaghan's winter maintenance RFP, which named the Township as additional insured
  • the Bruce Grey Catholic District School Board template, naming the Board
  • the Town of Slave Lake's snow tender, which required bidders to list the Town

Intact Public Entities, a municipal insurer, also recommends that municipalities be named as additional insured in contractor contracts.

How It Is Added

Additional insured status is added by endorsement to your policy. IBC defines an endorsement as "an amendment added to a written document ... altering its provisions." Your broker arranges it, and it is then shown on the certificate of insurance you send the client. Remember that a certificate is evidence of coverage; the policy and endorsement set the actual terms.

What to Check Before You Agree

  • Scope. Does the status apply only to claims arising from your work, or more broadly?
  • Limits. The additional insured shares your policy limits. See per occurrence vs aggregate limits.
  • Related wording. Contracts often pair it with primary and non-contributory wording or a waiver of subrogation. See the glossary.
  • Umbrella. If the contract requires a higher limit, check whether your umbrella extends to additional insureds.

Send the contract's insurance section to your broker before you sign. See snow removal contracts and insurance and property management snow contractors.

General information only, not insurance advice.

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Sources

Frequently Asked Questions

Does adding an additional insured cost extra?

It depends on the insurer and the policy. Ask your broker whether the endorsement carries a charge.

Is an additional insured the same as a certificate holder?

No. A certificate holder receives proof of insurance. An additional insured is actually protected under the policy by endorsement.

Do residential clients ask to be additional insured?

It is less common than with commercial and public clients. Strata and condo corporations are more likely to ask than individual homeowners.