What are "additional insured" endorsements used for?

"Additional insured" endorsements are used to extend coverage to parties not originally named in the policy. This is particularly useful in various business and contractual relationships, where a party may need to be covered under an insurance policy that primarily covers another party. For example, if a contractor hires subcontractors to perform work on a project, the contractor might require the subcontractors to add them as additional insureds on their liability policies. This ensures that the contractor is protected in case of claims arising from the subcontractor’s work, even though the contractor was not a party to the insurance policy initially.

This type of endorsement helps align the interests of different parties involved in a project or situation, facilitating cooperation while also addressing liability exposures. Ultimately, it enhances the scope of coverage ensuring that those who may have a potential liability are protected under the insurance without needing to procure a separate policy.