Understanding what additional insured means in an environmental insurance policy

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Virtually all environmental contractors and consultants require some form of environmental insurance coverage to be able to bid on contracts and to provide their services to the public. It’s important for environmental contractors and consultants to understand their insurance needs and all the terms covered in their policies.

Understanding what Additional Insured means with an environmental insurance policy is important. If an entity is the Named Insured or First Named Insured, the options for Additional Insured status are: Ongoing, during the course of your work; Completed, after the project has been completed; or, both Ongoing and Completed.

If an entity has a Blanket Additional Insured endorsement, any other entity that is required by contract to be one, can be an Additional Insured. If an entity does not have a contract with them, it can schedule them on an individual basis.

“Additional Insured status forwards most rights and privileges of your policy to another person or entity,” reported Brian Mcfarland, Vice President of Legends Environmental Insurance Services. “If your act or omission causes damage where the Additional Insured gets sued, your insurance will defend the Additional Insured in addition to you.”

Why this matters. Insurance is purchased to transfer the risk of loss. When working on a job, there are many entities that are susceptible to loss due to one’s negligence. They protect themselves by being named as an Additional Insured on a policy. Not appropriately giving Additional Insured status for jobs could lead to multiple suits from the same job.

Blanket Additional Insured is usually standard on environmental package policies and is activated when the insured has a contract requiring that status. For those that don’t have a contract, or their policy does not automatically include it, contact Legends Environmental Insurance Services for this and other insurance coverage options. Please visit http://www.Legends-enviro.com, call (800) 992-6999 ext 164 or email BrianM@Legends-enviro.com or Bill@Legends-enviro.com.

About Legends Environmental Insurance Services, LLC

Legends Environmental Insurance Services is nationally recognized as an innovator in providing environmental and restoration insurance programs. The company has over 40 years experience and provide their services in all 50 states and Canada.

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