Insurance Terms Explained (vol. 1)

Talk Shop with JEG: Learn to ‘Speak’ Insurance

 While insurance terminology can be technical and specific, understanding phrases and terms used by carriers in your policy is vital for every insured.  Our Talk Shop Series is meant to help bridge the gap between insurance professionals, and professionals requiring insurance. 


Vol. 1

Insurance Term(s) – Additional Insured

Term Defined: In US insurance policies, an additional insured is a person or organization that enjoys the benefits of being insured under an insurance policy, in addition to whoever originally purchased the insurance policy.

Other ways you may see it: Additionally Insured, Additional Named Insured(s), AI, and Designated (Additional) Insured

How this applies to you as an insured: When you add an Additional Insured to your policy, you are extending coverage on the carrier’s behalf to the Additional Insured due to their involvement or potential liability by relation to yourself (business), in the event of covered loss. Due to this coverage extension, some carriers chose to charge a fee for each or after a certain number of Additional Insureds. Additional Insureds cannot make changes to your policy, but they will be advised if your policy goes into cancellation status.

If you do work with other limousine companies, in particular taking leads that they initially booked, you should request to be added on their policy as Additional Insured, and you may wish to add them to yours to fully protect all involved. Landlords will also wish to be named as Additional Insured on your policy and may even require additional coverages (which JEG can help you acquire if need be!).