Insurance & LiensQuestion 1563 of 1605
'Additional insured' status is most valuable to an upstream party (like an owner or GC) because it:
a.Waives the sub's lien rights
b.Lowers the sub's premium
c.Guarantees project completion
d.Gives the upstream party access to the sub's insurer for defense and indemnity on claims arising from the sub's work
Explanation
Additional insured status gives the upstream party direct access to the downstream party's insurer to defend and indemnify claims arising from the downstream party's operations. This effectively transfers that portion of risk to the sub's insurer.
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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)