Additional insured (endorsement)

Additional insured is an endorsement on an insurance policy that extends coverage from the named insured to a third party, typically required by contract between a shipper, broker, or carrier.

In freight brokering, common additional-insured arrangements include: shipper requiring named status on the broker's general liability and contingent auto; broker requiring named status on the carrier's primary auto liability.

The endorsement must be reflected on the certificate of insurance and matches the named insured against the actual policy. Some brokers accept the certificate without verifying the underlying endorsement; the endorsement is the binding artifact.

Why this matters for freight brokers

Required additional-insured endorsements that turn out not to be on the policy are a frequent coverage gap. Verifying the endorsement (not just the certificate's reference to it) is part of the insurance check in vetting.

Related terms

• Contingent auto liability insurance — Contingent auto liability is third-party bodily injury and property damage coverage that responds when a motor carrier's primary auto policy fails to pay a claim arising from a load arranged by the broker.
• Shipper — A shipper is the party that owns the freight and tenders it to a freight broker or motor carrier for transportation.
• Freight broker — A freight broker is a licensed intermediary that arranges the transportation of freight between shippers and motor carriers without taking possession of the cargo or operating the equipment.