What is Additional Insured?

An Additional Insured is a person or business (usually your landlord or a client) who you add to your insurance policy so they’re also protected if something goes wrong with your restaurant’s operations.

What you need to know

Your commercial lease almost certainly requires you to name your landlord as an additional insured on your general liability policy. This protects them if a customer sues over an injury at your restaurant and tries to hold the property owner responsible.

How additional insured coverage works:

You request an endorsement from your insurance agent
The landlord or client is added to your policy by name
If a claim occurs, both you and the additional insured are covered
The additional insured can file claims directly with your carrier

Common situations requiring additional insureds:

Landlords – Required in virtually all commercial lease agreements
Event venues – When catering at hotels, banquet halls, or private venues
Corporate clients – Large companies often require it for catering contracts
Festival organizers – Food festivals and outdoor events typically mandate it
Property management companies – May require separate listing from the landlord

The endorsement process: Your insurance agent generates a Certificate of Insurance showing the additional insured status and sends it to the requesting party. This typically takes 24-48 hours and serves as proof of coverage.

Critical limitation: Additional insured status only covers liability arising from your operations. It doesn’t cover the landlord’s own negligence or issues unrelated to your restaurant.

Why it matters for restaurant owners

You can’t avoid this requirement—it’s standard in commercial leases and catering contracts. Refusing to add someone as an additional insured can result in lease violations, contract cancellations, or lost business opportunities.

The cost factor: Adding additional insureds typically costs little or nothing. Most policies include a blanket additional insured endorsement that automatically covers anyone you’re required to add by written contract, with no per-person fees.

Common additional insured requirements:

Primary and non-contributory coverage – Your insurance pays first, before the additional insured’s policy
Waiver of subrogation – Your insurer won’t sue the additional insured to recover claim costs
Specific coverage limits – Landlords may require $1M or $2M minimum per occurrence
Named specifically – Some contracts require the party to be listed by legal name, not covered by blanket endorsements

Protecting your coverage: Just notify your agent whenever you sign a new lease or major contract that requires this endorsement. Keep a file of all certificates you’ve issued to track who’s been added and when coverage ends.

Essential practices:

Read lease requirements carefully – Note specific coverage limits and endorsements needed
Request certificates in advance – Don’t wait until the last minute before lease signing
Verify accuracy – Ensure the certificate shows the correct legal name and address
Update when policies renew – Additional insured status doesn’t automatically transfer to new policy periods
Maintain documentation – Save copies of all certificates and the contracts requiring them
Communicate with your agent – Provide complete information about who needs to be added and why

The process is routine for insurance companies, but missing this requirement can jeopardize your lease or prevent you from securing catering contracts. Stay organized and proactive about managing your additional insured obligations.