Insurance & LiensQuestion 472 of 1605
A project owner asks to be named an "additional insured" on the general contractor's liability policy. What does this accomplish for the owner?
a.It transfers ownership of the policy to the owner
b.It guarantees the owner a refund of premiums at project completion
c.It replaces the owner's need for any property insurance
d.It extends the contractor's liability coverage to protect the owner for claims arising from the contractor's work
Explanation
Naming a party as an additional insured extends the policyholder's liability coverage to that party for covered claims connected to the named insured's work. Owners commonly require this so they are protected if a third party sues over the contractor's operations.
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Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)