Understanding Additional Insured (AI) Coverage & Endorsements

In the insurance and compliance world, Additional Insured (AI) coverage is a critical concept that offers extended protection to parties working with a vendor. This article will help clarify what AI status means, why it's important in VIVE compliance, and the specific types of AI endorsements your organization may encounter.

What is Additional Insured (AI)?

An Additional Insured is an entity (typically a property manager, association, or property owner) that is added to a vendor’s General Liability insurance policy. This allows the AI to receive liability coverage for claims arising out of the vendor’s work.

Key Facts:

AI status covers the negligent acts or omissions of the vendor (Named Insured).
The AI does not pay the insurance premium.
The AI may not receive notices of cancellation or be able to modify policy terms.
However, the AI can file a claim under the vendor's policy if they are named in a suit.

Important Limitation:

Workers’ Compensation and Employers’ Liability policies cannot include Additional Insureds in any U.S. state.

Why AI Coverage is Required

Most VIVE clients request AI status to protect themselves from liability related to vendor-performed work on their properties. Without this protection, a claim could leave the client exposed to legal and financial risks. This is particularly crucial in high-liability trades such as construction, HVAC, plumbing, landscaping, and roofing.

Common Additional Insured Endorsements

Below are three common endorsement types that vendors may provide as part of their insurance certificate package.

1. GL Additional Insured – Ongoing Operations

Covers bodily injury or property damage caused while work is being performed.
Applies to the active phase of a project.
Commonly used for in-progress jobs or multi-day repair work.

Example:
A contractor drops bricks from a chimney while performing repairs, damaging the neighbor’s greenhouse. If the property manager is named as an AI for ongoing operations, the policy will cover the damages and provide defense for the property manager.

2. GL Additional Insured – Completed Operations (AIPCO)

Covers claims that occur after a project is completed.
Essential for contractors whose work could cause later issues (e.g., structural failures, water leaks).

Example:
Three weeks after a contractor finishes rebuilding a chimney, the structure collapses and causes damage to adjacent property. If the property manager is listed as an AI for completed operations, they are protected and eligible for legal defense.

Note: Endorsement forms may include both ongoing and completed operations, depending on the language used by the insurer.

3. Primary and Non-Contributory (PNC) Language

Ensures that the vendor’s insurance is the first to respond to a claim.
No contribution will be sought from the AI’s policy.
This protects the AI’s own insurance limits and claims history.

Why it matters in VIVE:
If a vendor is required to list the client as an AI on a primary and non-contributory basis, the vendor's insurance must pay out first without sharing liability costs with the client's insurance.

What VIVE Looks for in a COI or Endorsement

When reviewing submitted Certificates of Insurance (COIs) in VIVE:

VIVE looks for AI endorsements that clearly name the client as the Additional Insured.
Confirm whether the form covers ongoing, completed, or both operations.
Ensure the policy includes Primary and Non-Contributory language if required.

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Need More Help?

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Email: support@getvived.com