Additional Insureds
Additional insureds are typically required on Commercial General Liability (CGL) policies of prime contractors and subcontractors. An owner may require the prime contractor to name them as an additional insured on their CGL policy. Similarly, a prime contractor may require the roofer to add the prime as an additional insured on the roofer’s CGL policy. When either of these situations take place, the additional insured (whether it be an owner or the prime contractor) receives two primary benefits. First, the additional insured receives added coverage without having to pay the insurer directly, because only the named insured is required to make payments on the premium; however, the cost of additional insured is usually passed on to the customer. Second, generally, an insurer may not pursue a subrogation claim against any additional insured because an insurer cannot sue its own insured for indemnity (although the...