Glossary

Additional Insured

Also known as: AI Endorsement, AI

A party added to another party's liability policy who receives coverage under that policy for claims arising from the named insured's operations, without being the primary policyholder.

In CRE, lenders, ground lessors, property managers, and general contractors routinely require additional insured status on a counterparty's general liability policy as a risk-transfer mechanism, so that a claim arising from the other party's negligence is defended and indemnified under that party's own coverage rather than falling back on the requiring party's policy or requiring separate litigation to establish fault. The scope of protection depends heavily on which additional insured endorsement form is used (ISO's CG 20 10 and CG 20 37 forms are common industry benchmarks) and whether coverage is limited to liability "caused by" the named insured's acts or the broader (and more favorable) "arising out of" language, a distinction that materially affects how much protection the endorsement actually provides in a dispute. Lenders typically require additional insured status on a borrower's or property manager's general liability and umbrella policies as a standing loan covenant, verified through an ACORD certificate at closing and renewal, though a certificate of insurance alone is not proof that the endorsement was actually issued and sophisticated parties request the endorsement itself.