There are two ways to go about securing an Additional Insured Endorsement. The first is with a Scheduled Endorsement. This method incurs a charge for each endorsement because the insurance carrier has to type the wording on a separate endorsement. When there are multiple entities to add, this can get quite pricey. This is the method that was used exclusively until a few years ago when Blanket Endorsements became more common.
The Blanket Endorsement is the second method and the AI Status is automatic IF it is required in the contract. As I mentioned above this is a relatively new way to go about it. The AI Endorsement wording is identical to what you would get with a Scheduled Endorsement except for the following type of wording for the name of the AI and the Location of the work, "All persons or organizations where required by written contract.", "All Projects". There are variations to this wording but they boil down to the same thing. This makes the AI status dependent on the contract.
Additional Insured status does not guarantee that the policy coverage will apply in the event of a claim. These are matters that could ultimately be decided in a courtroom. The basic underlying principle being that there has to be an insurable interest.
Read this article to learn more about AI Endorsements.
Floyd Sloat
Venture Insurance Services
124 E Olive Ave.
Burbank, CA 91502
866-726-8442