Commercial General Liability Insurance Coverage
"Additional Insured" means the association is added to and protected by the insurance policy of another party, often a contractor or vendor hired by the association. Being added as an additional insured to a contractor's or vendor's policy is normally done as an endorsement to their insurance policy. It makes the association a first-party claimant in the event the association is sued because of some act or omission by the contractor or vendor. In short, the association can demand that the contractor's or vendor's insurance company defend the association. Additional insured endorsements should include both:
- Ongoing Operations. This protects the association from claims made while work is being performed by the contractor or vendor.
- Completed Operations. This endorsement covers claims made after the work has been completed. The endorsement may be on the same form as ongoing operations or it may be on a separate form.
Most importantly, as an additional insured party, the association will receive written notice if the policy is canceled or not renewed for any reason.
American HOA Management