Glossary / Vendor requirements / Additional Insured

Additional Insured

Also known as: AI Endorsement · Additional Named Insured (different)

Vendor requirements DICEE: Endorsements

A party added to your policy who is covered for claims arising out of your operations—not their own independent acts.

An additional insured is a third party (typically a vendor or client) added to your policy via endorsement. Coverage extends to them only for liability arising out of your work, products, or operations—not for their own independent negligence. This is one of the most common vendor insurance requirements for startups closing enterprise deals.

Common vendor contract language

"Company shall name Client as additional insured on its Commercial General Liability and Umbrella policies, as required by written contract."

Where you'll see it

Vendor contractCOIPolicy

Why it matters for your business

  • The #1 most requested endorsement in vendor contracts.
  • Requires an actual endorsement on your policy—a COI alone isn't enough.
  • Coverage is limited to liability arising from your operations, not the additional insured's own acts.
  • Different additional insured endorsement forms offer different levels of coverage.

People also ask

What is the difference between additional insured and named insured?

The named insured is the policyholder (your company) with full rights under the policy. An additional insured is a third party added via endorsement with limited coverage—only for claims arising from your operations, not their own independent acts.

Does adding an additional insured cost extra?

Many GL policies include blanket additional insured coverage at no additional premium when required by written contract, though this varies by carrier and policy form. Your broker can confirm whether your specific policy includes this.

Can I add an additional insured to my E&O or Cyber policy?

Sometimes, but it's far less common than on GL. Additional insured endorsements are broadest and most common on General Liability (GL) and Umbrella policies. Some Tech E&O and Cyber policies offer a narrower 'additional insured where required by written contract' endorsement, but many carriers don't, and the coverage grant is more limited. This has nothing to do with those policies being claims-made—the trigger type only affects when a claim is covered, not who can be added as an insured.

Ready to take the next step?

Definitions are educational and may be modified by your specific policy language, endorsements, and state rules. For regulatory guidance, refer to the California Department of Insurance or the NAIC.

Reviewed by Andrei Craciunescu, CA Licensed Insurance Broker #4467994

Last updated: July 2026.