What Is An Additional Insured?

Do you own a building?  Or, are you an administrator or manager of a public entity, such as a school or hospital?  Do you allow civic clubs, social groups, or other organizations to meet at your facility--either periodically or regularly?  Then it's in your best interests to become an Additional Insured.  We'll explain by using an example.

Let's say a booster club is holding a fundraiser in a school cafeteria.  A large display is partially blocking one of the exits.  A fire ensues, and a few attendees are injured while trying to leave the partially blocked exit.  Some of them require medical attention. 

Would the school's liability policy cover these injuries?  Yes.  But why should the school's insurance carrier pay for these injuries?  After all, they were caused by the booster club's negligence--even the fire might have been caused by the club's negligence.  If the booster club has their own liability policy, its insurer should respond.  And if the club added the school as an Additional Insured to their general liability policy, that's exactly what the policy would do!  As you can see, being an Additional Insured is valuable protection.

Be sure to carefully review any risks or exposures when you grant permission for a group to meet in your facility--or an entertainment function.  And if the group is conducting an activity that endangers your contents, building, and/or employees INSIST that entity add you as an Additional Insured to their policy!

Many small groups and clubs don't carry liability insurance due to the costs.  But it never hurts to ask if they carry insurance.  And if the answer is yes, request they add you as an Additional Insured.  (At their cost.)  It could prove to valuable peace of mind!