Additional Insured (AI)
What Is an Additional Insured?
An additional insured (AI) is a person or business (like a studio, landlord, or event) added to your policy to protect them from claims arising from your work. This endorsement changes your policy so that the party you work with is also insured in the context of your business.
When Do I Need an Additional Insured Endorsement?
Add an additional insured when a client, studio, landlord, event organizer, or other qualified third party specifically requests it. It’s a common industry requirement because it makes it less risky for you to work on-site.
Example of how your additional insureds may appear in your online dashboard.
What Additional Insured Covers (And What It Doesn’t)
An additional insured is covered for claims made against your business that also involve them. Think of it as an umbrella shielding mainly you and others affected by you when necessary.
It covers: The AI’s legal responsibility for accidents connected to your operations; for example, a client says your service caused an injury while you were working in the AI’s salon
It doesn’t cover: The AI’s independent negligence, their other employees, or separate business activities unrelated to you
What Is an Additional Insured vs a Certificate Holder vs a Named Insured?
Additional insureds and certificate holders often ask to see proof of your insurance, but here’s how they differ:
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| Role | Definition | Coverage | Typical Example |
|---|---|---|---|
|
Named Insured (or Insured) |
The main policyholder who owns the insurance policy |
Has full coverage rights, can make changes to the policy, and is responsible for premium payments |
A beauty pro who buys a liability policy for their business |
|
Additional Insured |
A third party added to the policy to share in the coverage for the business relationship |
Has limited coverage, usually only for claims arising out of the named insured’s operations; cannot make changes to the policy |
A landlord added as an additional insured on a stylist’s policy for services performed on their property |
|
Certificate Holder |
A person or organization that receives proof of insurance (a certificate) but is not automatically covered under the policy |
No coverage; they simply verify the policyholder has valid insurance |
A client or vendor who asks to see a certificate before doing business |
Named Insured: You, who owns the policy
Additional Insured: Receives limited coverage benefits
Certificate Holder: Gets proof of insurance only
How Much Does It Cost to Add Additional Insureds to My Policy?
With Beauty & Bodywork Insurance (BBI), it costs $15 to add one additional insured to your policy. Or, add unlimited additional insureds for $30.
How Do I Add an Additional Insured to My Policy?
Add an additional insured to your BBI policy online at checkout or through your user dashboard. You get an instant certificate of insurance (COI) to show your AI that they are listed on your policy.
How Do I Remove an Additional Insured From My Policy (And Do I Need to?)
Remove an additional insured from your policy if you no longer work with the person or business. The best time to do this is during your policy renewal to prevent any coverage issues or confusion.
For example, if you’ve moved to a new location, you can remove your previous salon suite as an additional insured when renewing your policy. Simply log in to your BBI dashboard to edit your policy and remove the AI.
Additional Resources
Related Terms
- Certificate Holder
- Certificate of Insurance (COI)
- Endorsement
- Insured (Named Insured)
