In addition, a policy typically contains an exclusion from one insured suing another insured. In a situation where an additional insured is added, the insurance carrier would not be obligated to provide coverage. All errors and omissions policies are designed to compensate parties other than insureds and are not intended to cover disputes between co-insureds.
When we receive requests to add additional insureds, we will work with the insurance carrier to attempt to come up with a solution that is agreeable to all parties involved. In most cases, based on the carrier and their underwriting guidelines, we may not be able to honor this request. In those cases, we can provide a certification of coverage to your client that has requested they be named as an additional insured and this has been accepted by the client.
In summary, adding an additional insured is not in your best interest or in some cases not in the best interest of the client requesting to be added as an additional insured.
Check out our website at www.hsainsuranceservices.com for more Risk Management tips and information about our insurance services.