What defines an additional insured?

An additional insured is defined as a person or organization that is added to an insurance policy and gains coverage protections provided by that policy, though they do not have the authority to make changes to the policy itself. This concept is particularly relevant in liability insurance, where the additional insured might be a contractor, subcontractor, or a party involved in a lease agreement.

By being designated as an additional insured, these entities are afforded coverage in the event of a claim related to the operations, activities, or products of the primary insured, ensuring that they have protection without altering the original policy terms. This definition underscores the distinction between being covered under someone else’s policy while retaining the primary insured's control over the policy management.