Short answer
Additional insured on E&O is generally not something professional liability policies offer. Additional insured status is usually a general liability concept, and it can also apply to auto and umbrella policies. If a contract asks for it on your E&O, the request often reflects a form that was written with general liability in mind. Some professional liability forms and project policies handle this differently, so check your policy.
Why doesn’t additional insured on E&O usually work?
One solo architect forwarded a client’s request and asked, “That doesn’t seem right for errors and omissions, but maybe for general liability!? How should I answer him?” Their instinct was sound.
Additional insured status extends a policy’s protection to another party. On a professional liability policy, that would mean insuring your client against claims about your own design work. Those are often the very claims the client would bring against you. For that reason, professional liability policies generally don’t add additional insureds.
General liability works differently. An additional insured endorsement on a general liability policy can protect a client or contractor against certain claims arising from your operations. That is the usual home for the request.
What can you send when a contract asks for it on E&O?
Offer what the policy can provide and ask the client to correct the contract. A short reply might read:
“Thanks for sending the insurance requirements. Additional insured status typically applies to our general liability policy, and professional liability policies generally don’t add additional insureds. We can provide a certificate of insurance showing our professional liability coverage, and we can add you as additional insured on general liability where the contract requires it. Could you update the contract language accordingly?”
Your broker can confirm the wording against your actual policies before you send it.
How do additional insured endorsements work on general liability?
Many general liability policies include a blanket additional insured endorsement that applies when a written contract requires it. Some carriers include it at no charge, and others charge a small fee. One client asked, “Please let me know if there is an additional premium.” The answer depends on the carrier and the form, so ask for it in writing.
Our guide on how to read a COI shows where this endorsement appears on a certificate, and our certificates page explains how to request one.
Does additional insured status apply to workers’ compensation?
No. Additional insured status doesn’t apply to workers’ compensation. A waiver of subrogation may come up instead, and whether it is allowed depends on the state.
In one case, a city required additional insured status and a waiver of subrogation on the umbrella and workers’ compensation policies. The client’s state didn’t allow a waiver on workers’ compensation. Confirm the rule for your state with your broker before agreeing to the requirement.
What if your firm doesn’t carry general liability?
An additional insured request is often the first sign a small firm needs general liability. One client asked whether small firms carry it. General liability is something many of our firms carry, and it can start at around $500 to $1,000 a year. Pricing depends on your firm, its operations and the carrier.
Example: a client contract with the wrong request
Consider a hypothetical architecture firm with a contract that lists “client named as additional insured on professional liability.” The firm carries professional liability and general liability.
The firm sends the client a certificate showing both policies and offers an additional insured endorsement on general liability. It asks the client to revise the professional liability wording. The client agrees, and the contract matches the coverage the firm actually carries.
What to check before you answer a COI request
- Which policy each requirement names
- Whether the request says “when required by written contract”
- Whether your general liability includes a blanket additional insured endorsement and any added cost
- Whether the contract asks for a waiver of subrogation, and on which policies
- Whether a project-specific policy changes the answer
If you want a second look, send us the contract for a check.
Related questions
Can a client be additional insured on my professional liability policy?
Generally no. Professional liability policies usually don’t add additional insureds, though a few forms or project policies differ.
Why does my contract ask for additional insured on E&O?
Contract language is often borrowed from forms written for general liability. Ask the client to correct it, and offer a certificate for the coverage you carry.
Does an additional insured endorsement cost extra?
Sometimes it is included and sometimes it carries a small fee. Ask your broker whether the endorsement is blanket and what it costs.
Do I need a waiver of subrogation on workers’ compensation?
Only if the contract requires it and your state allows it. Rules vary by state, so confirm before you agree.
Do small firms need general liability?
Many carry it, especially when clients or contracts ask for additional insured status.