Who Can Be Listed as an Additional Insured on a Business Insurance Policy?

When running a company, Business Insurance is a key part of protecting your operations. But sometimes, it’s not just your business that needs protection. In many situations, other parties involved in your work may ask to be listed as an additional insured on your business insurance policy. But who exactly can be listed—and why?
Let’s break it down.

What Is an Additional Insured?

An additional insured is a person or organization added to your insurance policy who receives coverage under that policy. This means if a claim arises from your business operations, your insurance may also defend and cover the additional insured against that claim.
Adding someone as an additional insured doesn’t mean they get full access to your policy. They only receive coverage for claims connected to your business activities.

Who Can Be Listed?
Here are the most common types of parties that may be listed as additional insureds:

Landlords
If you lease office or retail space, your landlord will often require to be added as an additional insured. This helps protect them from liability if someone is injured on the premises due to your business’s activities.

Clients or Customers
Businesses that perform services for others—like contractors, consultants, or vendors—may be asked to add their clients as additional insureds. This ensures that if the work results in a claim, the client also has coverage under your policy.

General Contractors and Subcontractors
In construction or service-based industries, it’s common for general contractors to require subcontractors to add them as additional insureds. This helps shield the general contractor from claims related to the subcontractor’s work.

Property Owners
If your business performs work on someone else’s property (e.g., repairs, installations, landscaping), the property owner may request to be named as an additional insured to protect against risks from your operations.

Government Entities or Municipalities
If you're doing public work—like city maintenance, infrastructure upgrades, or event services—government entities often require additional insured status as part of permitting or contracting requirements.

Franchise Owners or Parent Companies
Franchisees may be required to list the franchisor as an additional insured as part of their franchise agreement. This provides liability protection for the larger brand connected to the franchisee’s day-to-day activities.

Why It Matters

Adding someone as an additional insured is not just a formality—it’s a way to manage risk and build trust. For the additional insured, it means less financial exposure. For the named insured (your business), it can be a condition to win contracts, keep leases active, or maintain good relationships with clients and partners.

Final Thoughts
​Knowing who can be listed as an additional insured—and why—is key to navigating contracts and protecting all parties involved in your operations. Always review the terms of your agreements and talk to your insurance provider to ensure proper coverage is in place.
Need help understanding additional insureds for your business policy? Please feel free to contact me.

Jason Matison
Commercial Insurance Agent
​Austin, Texas