Why provide others with additional insured status?
One reason is to protect the other party because of a close relationship with that party, such as a charter customer or business partner. Another reason is to comply with a contractual requirement to provide the additional insured status, a requirement typically found in an airport contract. What Does the Additional Insured Status Provide? Plainly stated, if a party is added as an additional insured to your policy, you are sharing your liability coverage with that party. For example, if you have a liability limit of $50,000,000 per occurrence, when you add an additional insured, you both share the $50,000,000 limit in the event of a claim. It does not multiply the liability coverage limit. In addition, they are provided with a legal defense. So what are the downsides? First, adding a further insured dilutes your liability coverage. Consider the following example: A charter operator has an accident involving 5 fatalities. The operator carries a liability coverage limit under his aircraf
