An Additional Insured endorsement is best described as:

An Additional Insured endorsement is best described as:

• A. It extends coverage to a third party under the policy
• B. It increases the insured's own coverage limits
• C. It removes the insured's liability for certain claims
• D. It shortens the policy term

Answer: (A)

An Additional Insured endorsement is a way to extend liability protection to someone other than the named insured. It adds a third party—such as a client, property owner, or project manager—onto the policy so that they can be defended and indemnified under the insured’s liability coverage if a claim arises from the insured’s operations. This describes extending coverage to another party, not increasing the insured’s own limits or altering the insured’s liability, and it doesn’t change the policy term. For example, a contractor can add a property owner as an additional insured so the owner has protection under the contractor’s general liability policy if someone is harmed by the project.

An Additional Insured endorsement is a way to extend liability protection to someone other than the named insured. It adds a third party—such as a client, property owner, or project manager—onto the policy so that they can be defended and indemnified under the insured’s liability coverage if a claim arises from the insured’s operations. This describes extending coverage to another party, not increasing the insured’s own limits or altering the insured’s liability, and it doesn’t change the policy term. For example, a contractor can add a property owner as an additional insured so the owner has protection under the contractor’s general liability policy if someone is harmed by the project.