An additional insured is person or entity covered by an insurance policy, other than the policyholder. Any additional insureds that you include in your coverage would have to be specifically named in your policy. This liability coverage could be limited to a single event, or for the duration of the policy.
A blanket additional insured also extends your insurance coverage but doesn’t require any individual to be specifically named in your policy. Instead, the policy identifies a person or group of people who would be given additional insured status and included in your coverage.
For example, a general contractor could have blanket additional insured coverage for any subcontractors they hire. This way, the contractor wouldn’t have to include the name of each subcontractor who works for them on a construction project.
A landlord could have a blanket policy endorsement to include any tenants within a building, for the duration of their lease.
A blanket additional insured endorsement offers a layer of financial protection for your lessees or contractors. In the event of a lawsuit or claim over contractor negligence, property damage, bodily injury, or accessibility issues, your blanket endorsement will keep them protected.
Any subcontractors your business hires would likely expect to be included in your commercial general liability insurance coverage, which insures against common business risks such as customer injury, damage to a customer’s property, and advertising injury.
By having your subcontractors added to your own insurance through a blanket endorsement, you wouldn’t have to worry about making sure each of them was included as an additional insured in your policy language.
Your blanket endorsement would automatically include all your subcontractors or building tenants who are part of your ongoing operations, without having to individually name who is included in your coverage.
It’s a more affordable way for a contractor to extend coverage to everyone on a job site or within a building, rather than having each subcontractor buy coverage on their own. It also ensures everyone on a job site meets the insurance requirements for the job.
A blanket additional insured endorsement can be written so it’s active as soon as you sign a contract with a subcontractor or a lease with a tenant.
If a general contractor adds a blanket endorsement to an insurance policy, it could stipulate that this coverage would be extended to subcontractors for as long as they’re working on a job together.
It would likely require a written contract or signed agreement between the business owner and subcontractors for this blanket coverage to apply.
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