What's the difference between Named Insureds, Additional Insureds, and Additional Interests?
Common ISO Forms & When to Use Them
Overview
Agents frequently receive requests to add various parties to a policy, but not all roles are equal. Below outlines the distinctions between Named Insured, Additional Insured, and Additional Interest, as well as common ISO forms and their appropriate usage to ensure coverage for all stakeholders.
Term | Coverage | Role |
|---|---|---|
Named Insured | Full liability | Policy Owner |
Additional Insured | Limited liability | Added by contact |
Additional Interest | None | Notice only |
1. Named Insured
Who they are: The primary policyholder. This is the entity purchasing the policy and is responsible for paying the premium.
Coverage: Full coverage under the policy.
Example: ABC Catering Company buys a GL policy — ABC Catering is the Named Insured.
2. Additional Insured (AI)
Who they are: A third party added to the policy to receive limited liability protection, often due to a contract or lease requirement.
Coverage: Restricted to liability arising from the Named Insured’s operations or premises. They do not receive full policy coverage.
3. Additional Interest
Who they are: A party that needs to receive notifications of policy changes, cancellations, or renewals — but does not receive coverage.
Coverage: None
Example: A bank financing ABC Catering’s equipment is listed as an Additional Interest. They get cancellation notices but cannot file claims.
Common ISO Forms & When to Use Them
CG 20 10 – Owners, Lessees, or Contractors (Ongoing Operations)
Covers liability while work is in progress.
Example: A general contractor is renovating a building. The property owner is added as an AI during the project.
CG 20 37 – Completed Operations
Covers liability after the work is complete.
Example: A roofer finishes a job. The homeowner is added as an AI for completed operations exposure.
CG 20 11 – Managers or Lessors of Premises
For landlords or property managers who require liability protection from the Named Insured’s on-premises activities.
CG 20 18 – Mortgagee Clause for General Liability
Protects a lender’s interests related to the insured’s operations.
Note: This is not a full Additional Insured.
FAQs
How do I figure out what role someone needs on the policy?
Start by asking: “Do they need actual coverage, or just notification?”
If they need liability protection → Additional Insured
If they only need notice of changes → Additional Interest
How do I determine which Additional Insured form to use?
Match the form to the exposure:
CG 20 10 — For ongoing operations (work in progress)
CG 20 37 — For completed operations (work finished)
CG 20 11 — For managers or lessors of premises
CG 20 18 — For mortgagee interest on GL (limited)
Who handles Certificates of Insurance (COIs)?
You the agent are responsible for issuing and maintaining COIs. Learn more.
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