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Business Insurance

What Is an Additional Insured on a Business Policy?

Truscott Insurance Solutions
July 27, 2026
4 min read

When a client or landlord asks to be named as an additional insured on your business policy, they are asking for a specific extension of your coverage to them. It is a routine request in many contracts, and understanding it helps you respond correctly.

What it means

Adding someone as an additional insured extends certain protections of your liability policy to that party for claims connected to your work. If a customer is sued over something related to a job you performed for them, your policy may help defend them.

Why it is requested

The party wants assurance that your insurance, not theirs, responds if your work leads to a claim. It is common in construction, leasing, and vendor agreements, and is usually documented on your certificate of insurance.

What Truscott recommends

Before you sign a contract with insurance requirements, make sure your policy can meet them. Explore business insurance or start a quote.

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