What does being added as an additional insured really protect?

[Jazmine S.]

Hello everyone,

I was reading a few other posts regarding this, but I don’t think anyone really put it in layman’s terms.

I assume that the point of ensuring that your contractors have GL and workman’s insurance is because if they get hurt on the job, they are less likely to sue you because they have insurance to lean on.

What is the true benefit of being added on to the policy? Maybe an example of a situation where this is beneficial would help? Is it in case you are injured yourself you would be able to go through their insurance? I’m missing something, help!

[Derek Lacy]

Your contractor drops a beam on a kid. You own the property so your on the suit too.

If you have an AI from the contractor, you get to be insured under their policy, and not your own.