Additional Insured vs Named Insured: The Difference (And Why It Matters)
Confused about who is on your insurance policy? Here is the plain-English difference between a Named Insured and an Additional Insured.
You signed a contract with a GC that requires "additional insured status with waiver of subrogation, primary and non-contributory." What does that mean? Here it is in plain English.
Named Insured
The Named Insured is the policy holder — usually you, your business, and any owners. Named Insureds have full rights to the policy: they can file claims, get paid, change the policy, and cancel it.
Additional Insured
An Additional Insured is added by endorsement, typically a GC or a property owner. They get protection under YOUR policy for claims arising from YOUR work — but they cannot change or cancel the policy. They’re a guest, not an owner.
Why GCs Require It
When the GC is named as Additional Insured on your policy, your insurance defends them in lawsuits caused by your work. This shifts the risk and the legal cost from the GC’s policy to yours.
The Other Words on the Contract
- Waiver of Subrogation: Your insurance can’t come back and sue the GC after paying a claim
- Primary and Non-Contributory: Your policy pays first, before the GC’s policy is touched