An additional insured is a person or organization, other than the named insured, who is protected by the terms of the 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." IRMI adds that the party is added as an insured "at the request of the named insured."
Why It Matters for Snow Contractors
Property managers, condo corporations, municipalities and school boards commonly ask to be named as an additional insured on a contractor's general liability policy. According to IRMI, it is often paired with an indemnity clause, giving the requesting party direct rights under the contractor's policy.
Published snow tenders include it. The Township of Otonabee-South Monaghan in Ontario and the Town of Slave Lake in Alberta both required the contractor to name them as additional insured.
Example
A plaza owner hires you for the season and requires additional insured status. A shopper slips in the lot and sues both the owner and you. Because the owner is an additional insured on your policy, it may be able to seek defence and coverage directly from your insurer, depending on the policy wording.
Related Terms and Guides
- What is an additional insured?
- Certificate of insurance
- Primary and non-contributory
- Certificates of insurance explained
General information only, not insurance or legal advice. Policy wordings differ; a licensed broker can explain how your own policy and contracts treat this.
Further reading: Insurance Bureau of Canada: Insurance glossary
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Frequently Asked Questions
Does adding an additional insured cost extra?
It depends on the insurer and the policy. Ask your broker.
Is an additional insured the same as a certificate holder?
Not necessarily. A certificate shows coverage exists; additional insured status is set by the policy and its endorsements.