my Clients requested to add them to additional insurance

[whuang]

What is the name of your state (only U.S. law)?
CA


Hi I just start out my own IT business. One of my client requested to add their company to my company insurance. I am new to this topic. Not sure what I should do to prevent any future lawsuit if I will add them to the Additional Insured Endorsements. My biggest certain on this is that my client might file claims that have nothing to do with my company's error or action. Also the client just signed my monthly contract agreement which does not state any of the insurance policy before they requested Additional Insured Endorsement. Just like to know what should I do now? Should I create a separate Terms and Conditions on this? If yes, what should I put on it. Please advised

Thanks,

 

[jonpaul42]

When you add your client as an additional insured to your insurance policy, you are allowing them to file a claim directly with your carrier in the event one of the products or services they purchased from you damages them in some way.

You should talk with your insurance agent and have him/her explain it to you. In my experience, this is not a big deal and has little to no cost to effect, but I am not an attorney and you should not take my advice as legal advice.

 

[melissann]

I own a small business and each contract I have requires me to list them as additional insured. It does not change the cost of the insurance at least it does not for me... I also require this of any contractors I hire (I make sure my company is listed as additional insured on their policy).

I believe this is very common and in the best interest of the company you are contracting from. Hope that helps