Additional Insured (AI) endorsements are standard in commercial construction contracts. Class Code 801 GCs must understand and comply with AI requirements.
What Is an Additional Insured?
An additional insured is a third party (owner, general contractor, client) added to your GL policy to receive coverage for claims arising from your work.
Standard AI Endorsement Language
Client contracts typically require:
- "Owners, contractors, and construction managers listed as additional insureds"
- "Coverage for ongoing and completed operations"
- "Primary and non-contributory coverage"
- "Waiver of subrogation"
Common Additional Insured Classes
Project Owners: The property owner requires AI status on all trades.
General Contractors: As a GC, you require subcontractors to add you as AI.
Architects & Engineers: Design professionals often require AI for liability arising from their work.
Blanket AI Endorsements
Instead of adding each client individually, a blanket AI endorsement covers:
- All current and future clients
- Automatic coverage without policy amendment
- Simplified compliance process
- More cost-effective than per-project amendments
Compliance Process
1. Obtain client contract or bid specifications
2. Review AI requirements in insurance schedule
3. Provide certificate of insurance with AI endorsement
4. Confirm blanket AI coverage applies
5. Maintain certificate copy in project file
Common Mistakes to Avoid
- Using outdated certificates without AI endorsement
- Assuming standard GL includes AI (it doesn't)
- Failing to add clients before project starts
- Using wrong certificate format
Capital & Co ensures your AI endorsements are properly configured and up-to-date.
Questions About Your Coverage?
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