An additional insured is defined as a general contractor as well as other entities that have become insured with the policy. They are given coverage and should they encounter a future claim, they have conferring coverage rights under the named insured’s policy. This allows for constant compliance and coverage and protection against any urgent claims. But how do you make sure that additional insured protection remains valuable to your company?
Make use of an advanced tracker for your certificates of insurance
With an automated system, you can be sure that your insurance certificates are managed, stored, and tracked efficiently. With a powerful software such as the COI Tracker, your certificates are guaranteed up-to-date and error-free. This, in turn, will make compliance easier as human error is removed from the picture. Employees can sometimes neglect the safe-keeping and renewals of certain certificates due to the large collection of certificates they have amassed. It is also handy to have this type of software for when you’re needing significant help with incoming audits and claims over endorsements. Having an automated system that lets you know when certificates are missing information, needing renewals, or anything that requires immediate attention.
Define the type of relationship with the additional insureds
Naming the type of relationship you have with the other organization listed in your COI is an important part of declaring additional insured endorsements. Doing this will help make sure that all parties are covered with the insurance and that the list of parties involved matches the endorsement. When parties are neglected and unlisted, they are easily stripped off the coverage, causing more headaches for their companies should any claim be filed. This goes to show how much the definition of additional insureds affects each of the parties involved.
List all the additional insureds
Not including the concerned parties as additional insured can spell trouble for that particular party. In some contracts, only the signatories are the only ones listed as additional insured. As much as this is important to those included, those unincluded entities will have to be listed under a second endorsement. If having a second endorsement is not readily available, it’s good to add a language that states “where required by contract” to make sure non-signatory entities are covered in the insurance.
Providing other concerned entities with additional insured protection is highly important for companies to maintain a harmonious and professional partnership with all the parties involved in every work or project. Make this even more possible with a reliable COI tracker that helps you become compliant every step of the way. Interested? Try out our demo today!