Additional Insured

When an individual or group is added to an existing insurance policy, it's important to protect the additionally insured from the potential risk the policy holder carries. So, if you do something risky, like start a firewood chopping business in my garage, I am not liable for any accidents you have.

Here's how it works: ABC Apartment Complex hires Quicky Pool Company to renovate their pool, built in the 1970s. ABC Apartment Complex requires Quicky Pool Company to add them as an additional insured on their liability insurance policy. One night during the renovation, Quicky Pool Company leaves the worksite unsecured, and two teenage boys from the apartment complex get into the work site, injuring themselves with shovels and cement that has been left out. Instead of the parents of these two boys reprimanding their children for causing damage to the pool site, they decide to sue ABC Apartment Complex. ABC Apartment Complex can pass on this claim to Quicky Pool Company, since ABC Apartment Complex is listed as additionally insured on the policy. Phew. Next time Quicky better lock the gate, but no skin for ABC.