Lenders & Contracts · Insurance Term
Additional Insured (AI)
Definition
An additional insured is a person or company added to someone else's liability policy by endorsement. It gets protection for claims that arise from the policyholder's work or premises. Landlords, lenders and project owners often require it in leases and contracts.
In Plain English
Say a customer slips in a tenant's store and sues the landlord too. The landlord wants the tenant's insurance to handle it. So leases often require the tenant to name the landlord as an additional insured on the tenant's commercial general liability policy. Owners do the same with contractors, vendors and property managers.
This coverage is usually narrower than the policyholder's own. Many endorsements cover you only for injury or damage caused, at least in part, by the policyholder's acts or work. The endorsement may name you, or it may be a blanket additional insured endorsement that applies when a written contract requires it.
Contracts often pair it with primary and noncontributory wording and a waiver of subrogation. A certificate of insurance alone does not make anyone an additional insured. Only the endorsement on the policy does.
Not sure how your policy handles this? Have us review it, or get a quote.
Example
Hypothetical: a contractor re-roofs a medical office building. A worker drops tools that injure a visitor, who sues both the contractor and the building owner. Because the contract required it, the owner was added as an additional insured on the contractor's policy, so the owner can tender the claim to the contractor's insurer.
Why It Matters for Texas Property Owners
In Texas, the Anti-Indemnity Act (Insurance Code Chapter 151) voids many construction-contract provisions that require a contractor to indemnify a party for that party's own negligence, and it makes additional insured requirements unenforceable to the same extent. There are exceptions, so have an attorney review construction contract insurance clauses.
What to Watch For
- Ask for a copy of the actual endorsement, not just a certificate.
- Check whether the endorsement covers ongoing operations, completed operations, or both.
- Make sure the additional insured's name matches the entity in the lease or contract.
- Confirm your own vendors and contractors carry limits at least as high as your contracts require.
Common Questions
Does being an additional insured mean the other policy covers me for anything?
No. Coverage is usually limited to claims arising from the named insured's work or operations, and the endorsement's wording controls.
Should my tenants name me as an additional insured?
Many commercial leases require it, and it is a common way to shift tenant-caused liability to the tenant's insurer. Your attorney can confirm the lease language fits your situation.
Sources
- Texas Insurance Code §151.102 (construction indemnity limits)
- Texas Insurance Code §151.104 (additional insured provisions)
Last updated October 14, 2026 · Primesure editorial team · How We Write