16
Florida Pool Pro
sm
• August 2014
Reminder!
Certified pool contractor licenses
EXPIRE August 31.
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to check for outstanding CE credits.
By David Griffiths, Insurance By Ken Brown /
INSURANCE UPDATE
What is Additional Insured status and
how is it different from Blanket Additional
Insured status?
The primary reason you or your company is required to add another party
as an Additional Insured (AI) to your insurance or, conversely, that you may
require another party to add you or your company as an AI to their insurance
is to shift the burden of risk. What essentially happens is that the AI status
extends coverage beyond the basic policy forms to the requestor. The one who
receives the AI status from another also receives limited insurance coverage
from the other.
Additional Insured is part of every risk transfer program. Risk transfer
programs are used extensively to shift risk from one party to another. If you
have signed a contract which requires special insurance endorsements or
coverages named Additional Insured, Waiver of Subrogation, and/or Primary
Non-contributory wording you have been a part of a risk transfer program...
Additional Insured status is crucial for many companies. While the
construction industry springs to mind, other examples are numerous: for
example, landlords are additional insureds on tenants’ policies, and distributors
and retailers are additional insureds on manufacturers’ policies.
Please note that even if you receiveAI status from another entity it does not
replace the need for your own insurance. You still need to carry insurance in
your name as well because the AI endorsement/coverage does not cover or
respond in all instances and/or to all circumstances.
