What Is an Additional Insured on a Business Insurance Policy?

Additional Insured vs Additional Named Insured: What’s the Difference?

These two terms sound similar but they’re not the same thing. Here’s how to tell them apart:

Additional Insured

An additional insured is a third party added to your policy via an endorsement. They get coverage related to your activities, but they can’t file claims themselves or make changes to the policy. That responsibility stays with you, the policyholder.

Example: A general contractor lists a subcontractor as an additional insured. If a claim is filed related to the subcontractor’s work on that job, the general contractor’s policy covers it, and the general contractor handles the claim process.

Additional Named Insured

An additional named insured is essentially a co-policyholder. They have the same rights and responsibilities as you: they can file claims, make policy changes, and have the same level of coverage.

Example: On a large construction project, a general contractor adds multiple subcontractors as additional named insureds. This helps coordinate how claims are handled across the whole project, reduces disputes over who’s responsible, and in some cases, can be more cost-effective than each subcontractor purchasing their own separate policy.

Does It Cost More to Add an Additional Insured?

Adding an additional insured typically costs around $50, depending on your insurer, and there’s no cost to the additional insured themselves. 

Some insurers offer a flat-rate option that lets you add as many additional insureds as you need for a single one-time fee. If you add multiple clients or partners throughout the year, that flat-rate option can save you money.

Who’s Most Commonly Asked to Add an Additional Insured?

If you work in any of these industries, there’s a good chance a client or landlord has already asked you for this or will soon:

• General contractors and subcontractors
• Cleaning and janitorial services
• IT consultants and freelancers
• Event planners and venue operators
• Photographers and videographers

Commercial leases, government contracts, and most large-project agreements require it as a standard condition.

8 Types of Additional Insured Endorsements

Not all additional insured endorsements are the same. There are eight main types, and the right one depends on your situation and what your contract requires:

1. Automatic Additional Insured Endorsement
   Automatically extends coverage to any party the policyholder is contractually obligated to insure without needing to name them individually each time.
2. Specific Named Additional Insured Endorsement
   Names a specific person or business on the policy. Used when a contract with a client explicitly requires them to be listed by name.
3. Ongoing Operations Additional Insured Endorsement
   Covers liabilities that arise while work is in progress. Common in construction, where multiple contractors are active on a site at the same time.
4. Completed Operations Additional Insured Endorsement
   Covers claims that come up after a project wraps up. Important for trades and contractors where defects or injuries can surface weeks or months after the job is done.
5. Primary and Non-Contributory Additional Insured Endorsement
   This endorsement ensures your policy pays out first – before the additional insured’s own policy kicks in. The additional insured’s coverage isn’t touched until your policy limits are exhausted.
6. Waiver of Subrogation Additional Insured Endorsement
   Prevents your insurance company from going after the additional insured to recover money paid on a claim. This is often required in commercial leases and construction contracts.
7. Vendors Additional Insured Endorsement
   Extends your coverage to vendors or suppliers whose products or services are tied to your business. Protects you from liabilities that could arise from a vendor’s activities.
8. Managers or Lessors of Premises Additional Insured Endorsement
   Covers property managers or landlords when you lease a space. If something happens at your location that leads to a claim, this endorsement protects the landlord from liability related to your operations.

There’s no one-size-fits-all answer here, and coverage limitations vary. If you’re unsure which endorsement applies to your situation, a licensed Zensurance broker can walk you through your options.

How to Add an Additional Insured to Your Business Insurance

It typically takes one to two business days to get an additional insured added and approved. Here’s what you’ll need to provide: 

• Your company name
• The full legal name of the person or business being added. It is usually a business name ending with “Inc.” or “Ltd.”
• Their mailing address
• Any specific requirements outlined in your contract with them

Already a Zensurance client? Email [email protected] with the details above. We’ll prepare a revised certificate of insurance and send it to you, usually within one to two business days.

Frequently Asked Questions About Additional Insureds

Can an additional insured file a claim on my policy?

Not unless they’re listed as an additional named insured. A standard additional insured can only receive protection. The policyholder (you) manages and files any claims.

Does adding an additional insured increase my premium?

It may result in a small fee – typically around $50 per addition, depending on your insurer. Some insurers offer flat-rate unlimited additional insured options.

What happens if I don’t add an additional insured when a contract requires it?

You could be in breach of contract, which may result in losing the project or being held personally liable for damages your policy would have otherwise covered. If a contract requires it, treat it as non-negotiable.

How long does it take to add an additional insured in Canada?

With Zensurance, it typically takes one to two business days. You’ll receive an updated certificate of insurance once the addition is approved.

What’s the difference between a certificate of insurance and an additional insured endorsement?

A certificate of insurance is a document that proves your coverage exists. An additional insured endorsement is the formal policy change that actually extends coverage to another party. Your client may ask for both.

Do I need an additional insured endorsement for every client?

Not necessarily, but many commercial contracts, leases, and government projects require it. Review your contracts carefully, and when in doubt, ask a licensed broker.

Protect Your Business – Get a Free Quote in Under 5 Minutes

Need to add an additional insured to your policy – or looking for the right business insurance to begin with? Zensurance makes it quick and easy.

Fill out an online application to get a free quote in under five minutes.

Our licensed brokers will shop more than 50 Canadian insurance providers to find you the right coverage at a competitive price – and make sure any additional insureds are included from day one.

– Updated May 8, 2026.