Does an Additional Insured Belong on Your Umbrella?
It’s a regular occurrence for contractors: You receive a request from another party (an owner, general contractor, lien holder, other contractor, or a government entity) to add them as an additional insured on your insurance policies. Whether that’s a good idea is up to you — but the party often makes it clear that if you want to do business, you’ll need to add them as an additional insured.
However, it’s not necessarily a good idea to add this entity to all of your policies. For example, your Excess Liability coverages — such as those under Umbrella insurance — were probably bought specifically for your own protection in case of catastrophic loss. If an additional insured, who might be well within their rights, is added to your policies with protection up to your basic coverage limits, will they also be allowed to “piggyback” up to the full amount of your coverage?
Should you add an additional insured to your umbrella policy?
Do not to set up any procedure that makes all of your coverage limits available automatically to any additional insured. Add them to the specific coverages and amounts that they request, but go no further. If in doubt, consult with your attorney about contractual requirements and possible gaps between what the entity is requesting in being added to your coverage and what your coverage will actually provide. To read the full article click here.
To learn more about how adding additional insureds works contact an ALIGNED Insurance Advocate or connect with us at www.alignedinsuranceinc.com today.
More About ALIGNED Insurance
ALIGNED specializes in delivering insurance and risk management solutions exclusively to Canadian businesses. Through our 18 points of differentiation and expertise, we deliver unmatched value to our growing portfolio of clients from all industries that range from small to large organizations.
We offer all of the following products:
Property Insurance- Including Business Interruption & Extra Expense
Machinery Breakdown/Boiler & Machinery Insurance
Course of Construction(COC)
Wrap-up Liability Insurance
Commercial General Liability / CGL Insurance
Pollution Liability Insurance
Commercial Automobile & Fleet Insurance
Umbrella Liability Insurance
Cyber, Hacking & Privacy Liability Insurance
Crime/Fidelity/Employee Theft Insurance
Professional Liability/Errors & Omissions (E&O) Insurance
Kidnap & Ransom Insurance
Representations & Warranty Insurance
Surety & Bonding