---
title: "Additional Insured: What It Means, How It Differs From a Certificate, and What It Costs"
description: "An additional insured gets protection under your policy through an endorsement, not a certificate. See how it differs, what to check and what it can cost."
url: "https://riskado.com/additional-insured/"
lang: "en"
published: "2026-10-13"
modified: "2026-10-13"
tags: ["additional-insured","certificate-of-insurance","endorsement","waiver-of-subrogation","general-liability"]
image: "https://riskado.com/og/default.jpg"
alternates:
  es: "https://riskado.com/es/asegurado-adicional.md"
---

# Additional Insured: What It Means, How It Differs From a Certificate, and What It Costs

Riskado

Oct 13, 2026 · 11 min read

![A construction site at dawn with stacked lumber and a parked work truck, no people or signs visible](https://riskado.com/blog/additional-insured/featured.jpg)

An additional insured is a person or organization that gets a stated degree of protection under someone else's [insurance policy](https://riskado.com/insurance-terms/policy/), usually through an [endorsement](https://riskado.com/insurance-terms/endorsement/). When a client, landlord or general contractor asks to be named as an additional insured, a [certificate of insurance](https://riskado.com/insurance-terms/certificate-of-insurance/) on its own does not do it; your policy or an [endorsement](https://riskado.com/insurance-terms/rider/) has to provide the status. That protection reaches only as far as the endorsement, the policy terms, the [exclusions](https://riskado.com/insurance-terms/exclusion/) and the limits allow. Ask your agent or [insurer](https://riskado.com/insurance-terms/insurer/) for the exact endorsement, confirm whether it covers ongoing work, completed work or both, and check that the party, location and project are named correctly. Some insurers charge for the endorsement, so ask about cost at the same time.

### Key takeaways

- **What it is**A person or organization that gets a stated degree of protection under someone else's policy, usually through an endorsement.
- **Certificate alone**A certificate of insurance does not create the status; the policy or an endorsement has to provide it.
- **Scope**The protection reaches only as far as the endorsement, policy terms, exclusions and limits allow.
- **What to confirm**Whether it covers ongoing work, completed work or both, and that the party, location and project are named correctly.
- **Cost**Some insurers charge for the endorsement, so ask about cost when you ask for it.

## What does additional insured mean?

The term describes a party named under a policy who would not otherwise be an insured but receives some protection under the named insured's coverage. The [Connecticut Insurance Department glossary (opens in a new tab)](https://portal.ct.gov/cid/searchable-archive/library/glossary) defines it that way and adds that an endorsement is typically required to create the status.

The usual setting is a contract. A contractor, vendor, tenant or other business agrees to protect an owner, landlord, client or general contractor against certain liability connected with its work or operations, and the contract asks that the other party be added to the business's liability policy. An endorsement can modify a policy by adding or deleting people or locations, or by expanding existing coverage, according to the [NAIC's guide to endorsements (opens in a new tab)](https://content.naic.org/article/consumer-insight-what-insurance-endorsement-or-rider). The endorsement is the piece that creates the status and sets its limits.

## What to do when a contract asks for it

Treat the request as a short project with four steps.

1.  **Pin down the request.** Find the insurance section of the contract or lease and note the exact party to be named, the policy it applies to, the work or location involved, the dates, and any endorsement form the contract names.
2.  **Send it to your agent or insurer.** Give them the contract language itself, not a paraphrase, and ask whether your policy can provide what is asked.
3.  **Get the endorsement issued.** If the insurer approves the request, it issues the endorsement, and your agent can then prepare a certificate that refers to it.
4.  **Compare the paperwork with the contract.** Check the endorsement, not only the certificate, against the contract's wording for the named party, operations, location, dates and limits.

If the insurer cannot provide the wording the contract asks for, tell the requesting party early. A contract clause alone does not oblige an insurer to issue a particular endorsement, and the gap is easier to resolve before work starts than after.

## Is a certificate of insurance enough?

A certificate is evidence that you carry insurance, not a change to the policy. The certificate holder is the party the certificate is issued to, and a certificate gives a snapshot of your coverage as of the day it is issued and confers no rights or benefits on the holder under the policy, according to [Connecticut Insurance Department Bulletin S-14 (opens in a new tab)](https://portal.ct.gov/cid/department-resources/bulletins/sales-bulletins/bulletin-s-14). The holder gains additional insured protection only when it is named by endorsement or qualifies as an insured under the policy's terms.

The ACORD 25 certificate form says the same thing on its face: if the certificate holder is an additional insured, the policy must have additional insured provisions or be endorsed ([ACORD 25 form, hosted by the Texas Department of Insurance (opens in a new tab)](https://tdi.texas.gov/certificates/documentcr/s21357a.pdf)). Texas goes a step further. The [Texas Department of Insurance certificate FAQ (opens in a new tab)](https://www.tdi.texas.gov/certificates/faq.html) says the additional insured box should be checked only when the policy includes an endorsement naming the certificate holder, and that a blanket additional insured endorsement does not let a certificate name a specific holder, though the certificate can state that the policy contains one.

The practical takeaway for both sides is to ask for the endorsement along with the certificate. Our guide to the [certificate of insurance for a small business](https://riskado.com/certificate-of-insurance-for-small-business/) explains what the certificate itself shows and how to request one.

![A single sheet of blank paper and a closed folder on a wooden desk beside a pen](https://riskado.com/blog/additional-insured/certificate-folder.jpg)

Ask for the endorsement along with the certificate.

## What additional insured coverage actually covers

The scope comes from the endorsement and the policy, so two endorsements with the same title can give different protection. The points that decide it are:

- Which liability is covered, and whether the injury or damage must be caused in whole or in part by your work or by people acting for you.
- Whether coverage applies to ongoing operations, completed operations or both.
- Which locations, projects or operations are named.
- Which exclusions apply.
- How the additional insured's protection relates to your policy limits and aggregates.

That last point is worth a direct question. Ask your agent whether the additional insured shares your policy's limits, and whether defense costs are paid inside or outside those limits. The answer affects how much protection remains for your own business after a claim involving the other party.

## Ongoing operations and completed operations endorsements

Contracts in construction and similar trades can name specific endorsement forms. A Texas Department of Insurance-approved contractor form lists them this way: CG 20 10 10/01 or its equivalent for ongoing operations only, CG 20 37 10/01 or its equivalent for completed operations, and CG 20 10 11/85 or its equivalent for both ongoing and completed operations ([TDI-approved supplemental form (opens in a new tab)](https://www.tdi.texas.gov/certificates/documentcr/119313.pdf)).

Endorsement forms named on a TDI-approved contractor form

Hover or tap a row to highlight it.

| Coverage asked for | Form listed | Source |
| --- | --- | --- |
| Ongoing operations only | CG 20 10 10/01 or its equivalent | [TDI-approved supplemental form (opens in a new tab)](https://www.tdi.texas.gov/certificates/documentcr/119313.pdf) |
| Completed operations | CG 20 37 10/01 or its equivalent | [TDI-approved supplemental form (opens in a new tab)](https://www.tdi.texas.gov/certificates/documentcr/119313.pdf) |
| Both ongoing and completed operations | CG 20 10 11/85 or its equivalent | [TDI-approved supplemental form (opens in a new tab)](https://www.tdi.texas.gov/certificates/documentcr/119313.pdf) |

Ongoing operations means the work while it is being performed. Completed operations means qualifying injury or damage that happens after the work is finished, subject to the endorsement wording. A contract that requires completed operations protection is asking for something an ongoing operations endorsement alone may not give. Form numbers and editions vary by insurer and over time, so ask your insurer which form and edition your policy uses and whether it matches what the contract names.

![A partly built wooden house frame on a clear day with a ladder leaning against it](https://riskado.com/blog/additional-insured/ongoing-work.jpg)

Coverage for work in progress and for finished work can come from different endorsements.

## Additional insured, additional named insured, loss payee and additional interest

These labels sound alike but mean different things, and a contract may use one when it means another.

Four policy statuses a contract may ask for

Hover or tap a row to highlight it.

| Status | What it means | Where it usually comes up |
| --- | --- | --- |
| Additional insured | A party named under your policy, usually by endorsement, that receives a stated degree of liability protection | Contracts with clients, landlords, owners and general contractors |
| Additional named insured | A party listed as an insured in the declarations or an addendum, with rights like a named insured except those reserved to the first named insured | Related businesses or co-owners on one policy |
| Loss payee | A creditor, such as a mortgage lender, protected by a loss payable clause for loss to property that secures a loan | Property and vehicles bought with financing |
| Additional interest | A party whose interest is noted on the policy; its meaning depends on the policy form | Leases and some lender or landlord requests |

The Connecticut glossary cautions that "additional named insured" is not used uniformly in the industry and can be confused with additional insured. A loss payable clause covers a mortgagee or secured creditor when insured property is lost or damaged, according to the [NAIC glossary (opens in a new tab)](https://content.naic.org/glossary-insurance-terms), which is property protection rather than liability protection. When a request uses any of these terms, ask the requester and your insurer which status the requester actually needs, and get it in the endorsement.

## Can a landlord or client be added to renters or tenant insurance?

It depends on the policy form and the insurer. Endorsements can add or delete people and locations on homeowners and renters policies, according to the NAIC, but that does not mean every renters policy offers additional insured status for a landlord. A landlord may instead be listed as an additional interest, or a property-related clause may fit the lease better.

For a commercial tenant, a general liability endorsement naming the landlord may be available, and the insurer confirms the form and scope. The lease and the policy together decide what is required. Our guide to [what renters insurance covers](https://riskado.com/what-does-renters-insurance-cover/) explains the personal policy itself.

## Waiver of subrogation is a separate request

Subrogation is the insurer's legal right, after paying a loss, to pursue the third party that caused it, according to the NAIC glossary. A waiver of subrogation endorsement gives up that recovery right against a specified party, subject to the policy terms. It does not make that party an additional insured, and it does not give the party liability coverage.

A contract can ask for both, which is why the two get confused. Treat them as two endorsements and check each one. Texas applies the same certificate rule to waivers as to additional insureds: the waiver box should be checked only when the policy includes a waiver endorsement naming the holder, and a blanket waiver cannot be shown as a waiver in favor of a particular holder.

Some contracts also ask for primary and noncontributory wording, which concerns which policy pays first when more than one could respond. It is another separate request, so ask your agent whether your endorsement includes it.

![Two folders and a pen on a desk beside a closed laptop](https://riskado.com/blog/additional-insured/two-endorsements.jpg)

Additional insured status and a waiver of subrogation come from separate endorsements.

## What state construction laws change

Some states limit what a construction contract can require. [Texas Insurance Code § 151.104 (opens in a new tab)](https://statutes.capitol.texas.gov/Docs/IN/htm/IN.151.htm) makes a construction-contract provision requiring additional insured coverage, or a policy provision providing it, void and unenforceable to the extent it requires or provides coverage the chapter prohibits for an indemnity agreement, with an exception for certain consolidated insurance programs. Illinois's [Construction Contract Indemnification for Negligence Act, 740 ILCS 35 (opens in a new tab)](https://www.ilga.gov/Legislation/ILCS/Articles?ActID=2026&ChapterID=57&Print=True), voids a construction-contract promise to indemnify another person from that person's own negligence, and its Section 3 says the act does not apply to construction bonds or insurance contracts.

These laws show that additional insured and indemnity wording can be affected by state law. Whether one applies to your contract depends on the contract, the policy, the facts and the state, so it is a question for the contract's attorney and your agent.

Contracts can also shift liability to you directly through an indemnity clause. A commercial general liability policy generally excludes liability you assume in a contract, with exceptions that include an "insured contract" as the policy defines it, according to the [Texas Department of Insurance guide to commercial general liability (opens in a new tab)](https://www.tdi.texas.gov/pubs/pc/pcgenliab.html). Ask your agent how your policy treats the indemnity clause in the contract you are signing.

## What does additional insured status cost?

There is no national price. Connecticut's Bulletin S-14 says there may be a cost for additional insured protection, and the NAIC says an endorsement that increases or reduces coverage can affect your premium. Whether your insurer charges, how much, and whether the charge is one-time or recurring depends on the insurer and the policy.

Timing works the same way. Ask your agent or insurer how long the endorsement takes and when it becomes effective, especially if work cannot start until the requester has it.

## How to verify the paperwork

Before work starts, the requester, or you on its behalf, should have:

- The certificate of insurance.
- The additional insured endorsement itself.
- The policy declarations and relevant policy language.
- The exact legal name of the additional insured.
- The covered location, project or operation.
- The effective dates.
- Whether the endorsement covers ongoing operations, completed operations or both.
- The applicable limits and aggregates.
- The relevant exclusions.
- Any primary and noncontributory wording, if the contract asks for it.
- Any waiver of subrogation endorsement, if the contract asks for it.
- Any cancellation or nonrenewal notice provision.

An agent or insurer may provide a copy of the policy or endorsements, and a certificate cannot state more than the related policy provides, according to the Texas FAQ. Texas violations of its certificate rules can bring civil penalties of up to $1,000 for each infraction, along with cease-and-desist orders and other remedies.

![A stack of blank pages held with a binder clip next to reading glasses on a table](https://riskado.com/blog/additional-insured/paperwork-check.jpg)

Check the endorsement itself against the contract before work starts.

## Questions to ask your agent or insurer

Take the contract and these questions to the agency handling your policy:

- Which endorsement provides the status this contract asks for, and which form and edition is it?
- Does it cover ongoing operations, completed operations or both?
- Is it blanket or scheduled, and does it name this party, project or location?
- Does the additional insured share my limits, and are defense costs inside or outside them?
- Which exclusions apply to the additional insured?
- Is a waiver of subrogation or primary and noncontributory wording also needed, and do I have it?
- Is there a fee, and is it one-time or recurring?
- When will the endorsement take effect, and can you send it with the certificate?
- If the insurer will not provide the requested wording, what can it provide?

Additional insured requests can also reach your other liability policies, such as commercial auto or an umbrella. Our comparison of [umbrella and excess liability insurance](https://riskado.com/umbrella-vs-excess-liability-insurance/) covers how those layers treat the contract's requirements. If you need an agency to work through the request, the [Riskado insurance agency directory](https://riskado.com/agencies/) lists agencies across the US.

**Quiz: Check what you know about additional insured status**

1. Does a certificate of insurance alone create additional insured status?
   - Yes, if the requester is listed as certificate holder
   - No, the policy or an endorsement must provide it **(correct answer)**
   - Only for landlords
2. On the TDI-approved contractor form, which form is listed for ongoing operations only?
   - CG 20 10 10/01 or its equivalent **(correct answer)**
   - CG 20 37 10/01 or its equivalent
   - A waiver of subrogation endorsement
3. On that form, which form is listed for completed operations?
   - CG 20 10 10/01 or its equivalent
   - CG 20 37 10/01 or its equivalent **(correct answer)**
   - A loss payable clause
4. In Texas, can a blanket additional insured endorsement let a certificate name a particular holder as an additional insured?
   - Yes, always
   - No, though the certificate may state that a blanket endorsement exists **(correct answer)**
   - Only if the holder pays a fee
5. Does a waiver of subrogation make a party an additional insured?
   - Yes, it is the same endorsement
   - No, it addresses the insurer's recovery rights and is a separate endorsement **(correct answer)**
   - Only on renters policies

## Common questions

### What is the difference between a policy and a certificate of insurance?

The policy is the contract with the insurer, including its endorsements. The certificate summarizes that coverage on the day it is issued and gives no rights to the holder. When the two disagree, the policy controls.

### Does an additional insured get its own policy limit?

Not automatically. The endorsement operates within your policy's limits, and how it shares them depends on the endorsement wording. Ask your agent to show you the limits section that applies.

### Is the additional insured covered for its own negligence?

That depends on the endorsement. Contractor endorsements can tie coverage to injury or damage caused in whole or in part by your work, and some state construction laws limit what a contract can require. Read the endorsement's wording on causation with your agent.

### What types of insurance does an LLC use for additional insured requests?

Additional insured requests commonly concern commercial general liability. Contracts can also ask about commercial auto, umbrella or excess liability, depending on the work. Our guide to [what insurance a small business needs](https://riskado.com/what-insurance-does-a-small-business-need/) covers the main policies.

## Your next step

Find the insurance section of the contract or lease, send it to your agent or insurer, and ask for the endorsement that provides the status it requires. Once the endorsement is issued, compare it against the contract before you send the certificate and endorsement to the requesting party.

**Sources:** [Connecticut Insurance Department glossary (opens in a new tab)](https://portal.ct.gov/cid/searchable-archive/library/glossary); [Connecticut Insurance Department Bulletin S-14 (opens in a new tab)](https://portal.ct.gov/cid/department-resources/bulletins/sales-bulletins/bulletin-s-14); [Texas Department of Insurance certificate FAQ (opens in a new tab)](https://www.tdi.texas.gov/certificates/faq.html); [ACORD 25 form (opens in a new tab)](https://tdi.texas.gov/certificates/documentcr/s21357a.pdf); [TDI-approved supplemental form (opens in a new tab)](https://www.tdi.texas.gov/certificates/documentcr/119313.pdf); [NAIC endorsements (opens in a new tab)](https://content.naic.org/article/consumer-insight-what-insurance-endorsement-or-rider); [NAIC glossary (opens in a new tab)](https://content.naic.org/glossary-insurance-terms); [Texas Department of Insurance commercial general liability guide (opens in a new tab)](https://www.tdi.texas.gov/pubs/pc/pcgenliab.html); [Texas Insurance Code Chapter 151 (opens in a new tab)](https://statutes.capitol.texas.gov/Docs/IN/htm/IN.151.htm); [740 ILCS 35 (opens in a new tab)](https://www.ilga.gov/Legislation/ILCS/Articles?ActID=2026&ChapterID=57&Print=True).

### Terms used in this guide

Tap a term to see what it means.

**Additional insured.** A party named under another party's policy, usually by endorsement, that receives a stated degree of protection.

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