An additional insured is a person or entity that is protected under an insurance policy, in addition to the primary policyholder. Typically, an additional insured is included on an insurance policy at the request of a third party, such as a lender, landlord, or contractor.
For example, let's say you take out a loan to buy a car. The lender requires that you add them as an additional insured on your auto insurance policy. This way, if you get into an accident and your car is damaged, the lender's interests are protected and they can be compensated for the damage.
Likewise, if you're a landlord and you require your tenants to have renters insurance, you may request to be included as an additional insured on their policy. This way, if the tenant damages the property, your interests are protected and you can be compensated for the damage.
Including an additional insured on your insurance policy is generally fairly simple and straightforward. You just need to contact your insurance company and request that the person or entity be added to your policy. Usually, there is no additional cost to add an additional insured, but it's always best to check with your insurance company to be sure.
