Who, What, Why, Where Additional Insureds?
Additional Insureds (aka when a landlord or event informs you that you will need to produce a COI proving they are covered under your policy) are an important part of being a mobile food vendor. You know you need to have additional insureds listed on your policy to sign up with a commissary kitchen or to sign a lease for your food trailer location, but Who, What, Why, and Where!?!
Many think, “Hey, they are free riding off my policy!” But what is actually occurring is that they will be included in coverage for losses you would be responsible for anyway so that they don’t take on all your liability risk. Landlords still have their own insurance as well (or should!).
In the below example, assume we are talking about a landlord additional insured.
Who:
An Additional Insured is a second party with whom you are doing business. As part of their contract requirements, they may ask to be listed as covered on your policy.
Why:
Your food trailer business brings increased risk for the landlord with whom you are contracted. By listing them as an additional insured they are protected along with you on your policy for a claim from your actions. They are only covered for claims arising out of “your work.”
An example would be a suit from a customer eating spoiled food. Since the lawsuit could name the landlord (and they always do), your policy would help protect the landlord.
What:
An additional insured is an endorsement to the existing policy that provides the policy benefits to the landlord for “your work.”
Where:
The landlord will want to be shown proof of being added as an additional insured. This is accomplished by having your agent complete a standard form called an Acord 25. Some agencies will charge extra for this work; we do not. We offer a form for clients to list the information needed to generate the certificate here. If you’re not our client, make sure your agency does not charge for a COI, and processes them 7 days a week. The worst thing that can happen is that you have a last minute opportunity on the weekend, but no one in the insurance office to process the additional insured request!
Joel Paprocki, CIC, CRM, CPCU is founder of Insure My Food. Joel has over 20 years of experience in the insurance industry. He is passionate about helping food entrepreneurs navigate insurance and risk management with confidence. He holds all three top industry designations: Certified Insurance Counselor, Certified Risk Manager, and Chartered Property and Casualty Underwriter. He has served over 5,000 clients in the food industry, including restaurants, food truck, cateriers, If you are looking for a reliable, experienced, and specialized insurance partner, please contact us.