The commercial general liability (CGL) coverage form has a “whois an insured” section in which it describes “an insured” to whomthe provisions of the CGL form apply.

However, that section does not deal with entities known as“additional insureds,” those that are added as insureds to the CGLform by way of endorsements.

In today's business world, a company is often asked (orrequired) to put another entity on its commercial general liabilitycoverage form as an additional insured. This is usually done byissuing an endorsement to the CGL form, adding the other entity asan insured. The endorsement can be fine-tuned to a specific entityor can be a blanket additional insured endorsement. Furthermore,the wording of the additional insured endorsement can be simple ormore complex.

Legal and financial consequences

But regardless of the length or format of an additional insuredendorsement, the insured and the insurer should realize that adecision to make some entity an additional insured on a generalliability policy should not be dismissed as just a simple businessdecision that has no real consequences. There can be legal andfinancial consequences arising from that decision.

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