When it comes to general liability, your insurance policy protects your business in the event that a person is injured or property is damaged during the course of your regular business services. If something unfortunate happens, your insurance will pay for covered damages incurred so they don’t come out of your own finances. Additional insureds benefit from the same protection that you do in the case someone brings a case against you in which they are also named.
What is an Additional Insured?
In the most basic terms, an additional insured is a person, place, or organization added to your insurance policy who also benefits from your liability coverage. Typically, these individuals are professional connections who have the potential to be directly impacted by your business. By naming them as additional insureds, you extend your coverage benefits in case they are named in a lawsuit resulting from your actions.
Example of an Additional Insured
Say that you’re a hairdresser renting salon space from a commercial landlord. At one of your appointments, you accidentally set the temperature of one of the hair dryers too high and your client suffers burns to their scalp that require medical treatment.
Your client has a right to seek payment in the form of legal damages against you because you were responsible for their injuries, but because the incident happened in a rented space, your client can also name your landlord as being partially responsible. By naming your landlord as an additional insured, your landlord is protected against any liability under your policy, but only if you name them before any incidents occur.
Who Can be Listed as an Additional Insured?
Additional insureds can be anyone who has a direct, professional connection to your business. Some commonly named additional insureds include:
- Landlords who own the property you are renting or performing services in
- Businesses who hire you as an independent contractor
- Events, convention, festivals, or any other venue where you’ll be providing services temporarily
People who don’t qualify as additional insureds on your BBI policy include:
- Friends or family
Even if these people help you occasionally with your business or even provide similar services as you, your policy won’t protect them.
What Coverage do Additional Insureds Receive?
Additional insureds receive coverage at the same level and under the same terms as the policy you select for yourself. BBI policies provide up to $3,000,000 aggregate yearly coverage for professional and general liability which is shared between you and your additional insureds. Your policy covers the defense costs, separately from the aggregate, for all parties named in a suit or claim.
Who Needs Additional Insureds?
Many beauty and bodywork professionals work in physical spaces where the landlord or business owner requires they be added as additional insureds. Some beauty professionals might elect to automatically list property owners or event venues as additional insureds as a sign of dedication and professional consideration.
However, unless you are specifically required to name additional insureds as part of your work contract or as a condition of employment, you don’t need to add any additional insureds on your policy.
How Much Does an Additional Insured Cost?
BBI’s general and professional liability policy allows you to add a single additional insured for $15 per year, and unlimited additional insureds for $30 per year. Premiums on additional insureds are paid yearly when you sign up for your plan, or at the time of purchase if you add them to your plan later on.
How to Purchase Additional Insured Coverage
- Login to your dashboard.
- Under “manage policies,” select “add landlord, employer, event” and add the name, address, and email of your additional insured.
- Checkout and pay as you normally would.
Chris Graham, customer service rep, is here to help!
The Importance of Additional Insureds to Your Business
In an industry where accidents or unforeseen incidents can result in expensive damages, listing third-party stakeholders as additional insureds provides them with the same level of protection that you enjoy. This not only instills confidence in your clients, but it also boosts your professional reputation while opening your business up to new employment opportunities.
By taking this proactive step, you demonstrate your commitment to safety and well-being, fostering trust and loyalty while mitigating potential financial risks. Ultimately, adding additional insureds to your insurance policy is a wise investment that can contribute to the long-term success and sustainability of your business!
Boost Your Business With Additional Insureds
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