Additional Insured: What General Contractors Need From Subs
Being an additional insured on your sub's general liability policy means their insurer defends and pays for you when a claim arises from their work. It is how a sub's mistake stays on the sub's insurance instead of yours.
Why it matters
When someone is hurt or property is damaged on a job, the injured party usually names everyone: the owner, the general contractor and the subs. If you are an additional insured on the responsible sub's policy, that insurer handles your defense for claims arising from the sub's work. Without it, your own policy pays, and your premiums follow.
The endorsements to ask for
- Ongoing operations (commonly ISO form CG 20 10). Covers you while the sub is working.
- Completed operations (commonly ISO form CG 20 37). Covers you after the work is finished, which is when many construction defect claims show up.
- Blanket additional insured wording, which adds anyone the sub agreed to cover in a written contract. Make sure your subcontract actually says so.
Primary and non-contributory
Ask for this wording as well. Primary means the sub's policy pays first. Non-contributory means it will not ask your policy to share the cost.
How to verify it
- On the ACORD 25 certificate, look for a "Y" in the ADDL INSD column on the general liability row.
- Read the description of operations for your company name, the project, and primary and non-contributory wording.
- Ask for copies of the endorsements. A certificate is only a summary; the endorsement is what actually changes the policy.
- Recheck at every renewal, since a new policy can come with different endorsements.
Certificate holder vs. additional insured
Being the certificate holder only means the certificate was issued to you. It gives you no coverage. Additional insured status is what puts you on the policy.
This guide is general information, not insurance or legal advice. Your insurance agent can confirm the endorsements your contracts need.