What is an additional insured endorsement?

When a client's contract says "Consultant shall name Client as an additional insured," it's requesting an endorsement on your General Liability policy that extends coverage to the client as if they were a policyholder.

It's one of the most common requirements in enterprise consulting contracts, and one of the most misunderstood.

What it actually does

Without the endorsement, your GL policy only covers you (the named insured). If a third party sues your client over something related to your work, the client has to use their own insurance.

With the additional insured endorsement, your policy also covers the client for claims arising from your operations. Their insurer doesn't have to respond — yours does.

In practical terms: if you accidentally expose client data, damage client property, or cause harm at a client's facility, and a third party sues the client rather than you, your GL policy responds on the client's behalf.

Why clients require it

Clients require it because they take on risk when they engage outside contractors. The additional insured endorsement transfers part of that risk back to your insurer. It's a contractual risk management tool.

Large enterprises often have blanket requirements in their MSA templates — they require it from every vendor regardless of actual risk.

The entity name must be exact

This is where consultants get stuck. The additional insured endorsement must name the correct legal entity — exactly as it appears on the client's business registration.

"Acme Corp," "Acme Corporation," and "Acme Corporation, Inc." are legally different entities. If the endorsement names the wrong one, the coverage may not respond when a claim is filed.

Your MSA or contract should state the exact legal name of the entity that needs to be named. If it doesn't, ask the procurement team before you buy coverage — changing the named insured after binding may require a new policy.

How to get it added to your policy

With traditional insurance, you call or email your broker with the entity name, they contact the carrier, and the carrier issues an endorsement and a new certificate. This often takes 1–2 business days.

Fennel reads the additional insured name directly from your uploaded contract and pre-populates it into the endorsement when you bind. You verify the name, confirm, and the COI reflects the correct additional insured immediately.

Primary and non-contributory language

Additional insured requirements often come with a "primary and non-contributory" requirement. This means your GL policy responds first to covered claims, and the client's insurer doesn't have to contribute.

Without "primary and non-contributory," both insurers may dispute who pays first — a process called "contribution" that slows down claims and frustrates everyone. Most carriers add this language via endorsement at the same time as the additional insured endorsement.

What it does NOT cover

The additional insured endorsement only applies to your GL policy. It does not extend your E&O (Professional Liability) policy to the client — E&O is always written only for the named insured (you).

It also doesn't cover claims that arise solely from the client's own independent negligence. The endorsement covers claims arising from your operations.