What is the difference between an additional interest and an additional insured?

Asked By: Narjisse Zehnder | Last Updated: 2nd June, 2020
Category: personal finance life insurance
4.9/5 (206 Views . 25 Votes)
They are often used interchangeably, but they refer to different parties. An additional interest has a vested “interestin the item or property being insured but has no actual ownership of it. An additional insured party often holds partial ownership of what's being insured.

Click to see full answer


People also ask, what does additional interest mean in auto insurance?

An Additional Interest is a party who may be INTERESTED that an item is insured, but DOESN'T have any ownership in that item and therefore they CANNOT be listed as an Additional Insured. For example, a condominium association would have an INTEREST in all unit owners within the complex having insurance.

Furthermore, what is additional interest information? On your renters insurance policy, an additional interest simply means a party that will be notified of any changes to your policy. The types of changes the additional interest will be notified of typically include cancellations, lapses in coverage, or renewals.

Also, does it cost more to add an additional insured?

The cost of adding an additional insured is typically low, compared to the costs of the premium. Insurance company underwriting departments often consider the additional risk associated with additional insureds as marginal.

Can you be an additional insured on a property policy?

The term additional insured means a person or entity that is covered under another party's insurance policy. Additional insureds are often included under general liability, commercial property or commercial auto policies.

32 Related Question Answers Found

When should I request additional insured status?

Additional insured status is often requested when a client is exposed to potential law suits based on the work of the named insured.

Why are landlords additional insured?

By being additional insured, the landlord is given protection similar to if he were a named insured on your renters policy. Because the spouse is insured under the policy, they are generally barred from making a claim against the policy's liability coverage.

How does additional insured work?

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. These persons enjoy insured status only while they pursue the business of the named insured.

Should property manager be additional insured?

No, not all companies charge to add a Property Manager to the policy and in fact, many of them do not. No, your Property Manager will most likely not pay to have them added to your insurance policy as an additional insured because this is typically a requirement of the Landlord.

Is lien holder and additional insured the same?


A lien holder may be an additional interest or an additional insured. If you have a loan on your car then your financing company can require you to have them listed on your auto insurance policy as the lien holder and as an additional interest since they have an interest in your vehicle and the coverages on it.

How do I add an additional insured?

To add an additional insured to an insurance policy, consult an Insureon insurance agent and review the policy, identify whether an additional insured can be added, and assess the level of coverage the additional insured is requesting. You'll typically need to fill out an additional insured endorsement form.

What does additional interested party mean in insurance?

An interested party is also sometimes called an "additional interested" or "third party designee." Being named as an interested party doesn't allow your landlord to make a claim on or make changes to your renters insurance—it only entitles them to know the status of your policy.

How do I add additional insurance to my certificate of insurance?

You may be added as an additional insured through a scheduled endorsement or a blanket endorsement. If the 3rd party adds you through a scheduled endorsement, then your specific name has been given to the insurance carrier and added as an additional insured.

Who can be added as an additional insured?

Any person or company that you add to your policy is referred to as an Additional Insured. They are named on your certificate, and only have a certificate if you send them either a physical or electronic copy of the certificate.

Who should be an additional insured?


Additional Insured,” usually refers to a person or entity added to the policy by an endorsement. In general, endorsements will provide cover to the people or businesses named on them only for claims arising out of the acts or omissions of the primary insureds.

What does an additional insured endorsement look like?

Additional insured status is an endorsement placed on a pre-existing liability insurance policy, such as a General or Professional Liability Policy. When you are added to their policy, your business is free from liability, while enjoying the benefit of the Subcontractor's Liability Insurance.

What does an additional insured endorsement mean?

Definition. Additional Insured Endorsement — policy endorsement used to add coverage for additional insureds by name—for example, mortgage holders or lessors. There are a number of different forms intended to address various situations, some of which afford very restrictive coverage to additional insureds.

What does additional insured mean on a certificate of insurance?

The coverage designated to your business under an additional insured endorsement should be covered on a primary basis. This means, that if a claim is filed against your company that is covered by the endorsement, the policyholder's insurance will pay to cover the claim first.

What is difference between additional insured and certificate holder?

Bottom line: Certificate Holder is simply proof of insurance, where as Additional Insured status gives the main contractor coverage and rights under their sub-contractor's or vendor's, the "Name Insured" policy.

How many additional insured endorsements are there?


There are many types of additional insured endorsements available in the insurance market. However, this article will focus on four common ISO additional insured endorsements related to commercial general liability policies purchased by contractors.

Can an additional insured sue a named insured?

Cross-liability means that one insured party can sue another insured party when both parties are under the same policy. Standard liability insurance typically includes a cross-liability clause known as a Separation of Insureds agreement.

What does primary and noncontributory mean?

For example, a contractor may be required to provide liability insurance that is primary and noncontributory. This means that the contractor's policy must pay before other applicable policies (primary) and without seeking contribution from other policies that also claim to be primary (noncontributory).