A project owner asks to be named an "additional insured" on the general contractor's liability policy. What does this accomplish for the owner?

Explanation

Additional insured status is derivative: the owner is brought under the contractor's own liability policy for claims arising out of the contractor's work, so when a third party sues over the contractor's operations that insurer defends and indemnifies the owner too, within the policy's limits and terms. Ownership of the policy does not move, which is what (a) supposes. Premium is the named insured's obligation and is never refunded to an additional insured, so (b) is wrong. (c) is the substantive error worth remembering: liability cover answers claims made by others, not damage to the owner's own property, so the owner still needs builder's risk or property insurance. The endorsement is also narrower than being a named insured, because it reaches only liability connected to the named insured's work.