Joel Paprocki, CIC, CPCU
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, 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!).
(The below example assumes we are talking about a landlord additional insured.)
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.
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.
An additional insured is an endorsement to the existing policy that provides the policy benefits to the landlord for "your work."
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 also offer a form for the information needed to generate the certificate for you here.