Dear JSA,
In my agency we disagree about the Blanket Additional Insured endorsement – I believe it extends AI status to other parties who have entered into a written contract with our insured, but does not extend all coverage provisions and policy benefits; others believe the Blanket AI endorsement provides AI status to anyone who requests it, and extends all coverages and policy benefits that the named insured enjoys. Who’s right?
– Boggled about Blanket AI
Dear Boggled,
You win this round! Blanket AI endorsements are not standard, but most indicate a written contract is required between the named insured and the other party for AI status to apply.
One big area of concern is notice of cancellation. Just because an Additional Insured has requested a certain number of days notice of cancellation, does not mean notice will be provided. Common policy provisions state notice will be provided to the first named insured ONLY, and the Blanket AI endorsement does not change this. The only way to ensure the AI receives notice of cancellation is for the company to endorse the policy on an individual basis and agree to provide notice to the Additional Insured. Also, keep in mind that indicating on a Certificate of Insurance that notice will be provided to the Additional Insured does not guarantee it will be provided unless the policy is actually endorsed.
Just remember while the Blanket Additional Insured endorsement is a useful way to reduce paperwork and potentially prevent administrative oversights, there are individual additional insured endorsements that provide broader coverage and may respond better to individual requests.
Hope that helps! If you need “additional” info, let me know!
XOXO,
JSA
