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Risk Management Library

Reduce Your Firm’s Risk of Loss by Understanding “Additional Insured” Requirements

By Ashley Hurd – Hall & Comapny

– Download Article pdf

Apart from securing a promise by one party to reimburse another for an expected loss by means of a contractual indemnification agreement, a design firm should incorporate an insurance requirement section in their contract that requires being named as an Additional Insured onto the client’s CGL policy, as well as those policies of the project contractors and subcontractors. This additional insured requirement will not provide the firm with any protection against liability arising from the firm’s professional acts, errors or omissions. It will, however, afford you protection from your general negligence and from matters concerning construction defects that are not connected to your professional acts, errors or omissions.

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