What is blanket additional insured coverage?

It automatically extends coverage to entities requiring proof of insurance, common in contract work.

Blanket additional insured coverage is a provision found in many commercial insurance policies which automatically extends the coverage of the policy to other parties who the primary insured is required to add as insured entities under their policy. This is common in industries where businesses often work with multiple contractors or partners. For example, suppose you own a contractor business, and a client requires that they be included in your insurance policy as an insured party before you can commence work. With blanket additional insured coverage, this process is streamlined, meaning you don't need to individually name each entity you work with in your insurance policy—it happens automatically. This type of coverage is particularly useful in contract work where having a simple way to prove insurance coverage is critical for fast-moving projects.

Imagine that you run a construction company and you have just signed a contract to start a big project for a new client. As part of the agreement, the client requires to be added to your insurance policy as an additional insured party to protect themselves from potential risks associated with your work. Instead of going through cumbersome paperwork each time you get a new contract, your existing insurance policy with blanket additional insured coverage automatically includes the client once the contract is signed. This saves you time and provides reassurance to your clients that they are protected, helping you maintain good client relationships.

If you frequently engage in projects or contracts that require additional insured parties on your insurance, consider opting for a policy that includes blanket additional insured coverage. This type of coverage can save you considerable time and reduce administrative headaches, as you won't need to manually update your policy each time a new contract requires proof of insurance. Make sure to discuss this option with your insurance provider to understand all terms and ensure it fits your business operations.