Additional Insured – Contract Tip of the Week

Q: When can a party be named as an additional insured under one of my insurance policies?

A: A party, preferably a specific party that is part of the contract chain, can be named as an additional insured only when required by written contract and only on certain policies. Professional liability, workers compensation, and privacy insurance policies typically do not allow the naming of additional insureds. Also, please note that RLI’s policy language that allows for the naming of additional insureds is filed and approved with state authorities and generally cannot be modified. In the event of a conflict between the language of the contract, the language on a certificate of insurance, and the policy language of the insurance policy, it is the language of the insurance policy that determines the available coverage.

The Risk Specialty Group and RLI Design Professionals are pleased to feature our Contract Tip of the Week series. Each week, we’ll review a question submitted by a design firm relating to the subject of contracts. Keep in mind, though, that these discussions are general in nature and in making specific business decisions, it’s important to review your options with a knowledgeable attorney.