What It Actually Means When a GC Adds You as Additional Insured

A few weeks ago on one of these videos, a commenter named Jesse Kessler made a point worth addressing directly. He noted that a flow-down clause isn't binding unless the prime contract and AIA documents are attached as exhibits. He's right. And the same enforceability logic applies to additional insured status.

What Additional Insured Status Actually Is

When a GC requires a subcontractor to name them as additional insured on the sub's GL policy, they are asking for access to the sub's coverage. If something the sub does causes a claim involving the GC, the sub's policy responds on behalf of both parties. The GC gets a defense and coverage under the sub's policy — not just their own.

The question is whether it actually works that way. The answer depends on something most contractors never check.

The Certificate vs the Endorsement

A certificate of insurance is a summary document. It lists the parties, the policy limits, and the coverages in place as of the date it was issued. It can list anyone as additional insured.

What actually creates additional insured coverage is an endorsement on the policy — a modification to the policy form that adds a specific provision. Without an endorsement, there is no additional insured coverage, regardless of what the certificate says.

Jesse Kessler's point applies directly here. The certificate can represent anything. What matters is whether the endorsement is on the policy and whether it matches what the contract requires.

CG 20 10 and CG 20 37

There are two primary additional insured endorsement forms that contractors deal with regularly.

CG 20 10 covers ongoing operations — while the subcontractor is actively working on the project.

CG 20 37 covers completed operations — claims that arise after the job is finished.

Most construction contracts that require additional insured status require both forms. Most subcontractors only carry the CG 20 10. A certificate that lists additional insured without specifying endorsement form numbers does not confirm which coverage is in place.

Primary and Noncontributory

Most contracts now include a primary and noncontributory requirement alongside the additional insured requirement.

Primary means the subcontractor's GL policy responds before the GC's own policy. Noncontributory means the GC's policy is not required to contribute at all.

Without this language in the endorsement, a claim can trigger a dispute between carriers over which policy responds and how much each pays. Primary and noncontributory requires specific endorsement language — not a certificate checkbox.

Three Things to Verify Before Any Job

First — confirm the additional insured endorsement is actually on the policy. Ask for the endorsement form number. A certificate without a form number is incomplete.

Second — confirm whether the contract requires ongoing operations, completed operations, or both. Match the requirement to the endorsement forms — CG 20 10 for ongoing, CG 20 37 for completed.

Third — confirm whether the contract requires primary and noncontributory language and whether the endorsement includes it.

Tell your agent before the job starts — not after a claim is filed.

If you have a contract with an additional insured requirement and want to confirm your policy satisfies it — that is a 15-minute conversation.

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