Additional Insurance Coverage

Association of Construction & Development
January 6, 2014 — 1,571 views  

Additional Insurance Coverage is a recently developed principle in insurance. It means that the insurance covers not only the person named in the insurance policy but also additional people who are also affected by the same risk covered by the insurance.

For example, when a person purchases home insurance for his house, additional insurance means that not only the owner of the house, but everyone else living in the house also comes under the insurance coverage.

Types of Additional Insurance Coverage

There are several types of insurance that come under Additional Insurance Coverage. It includes any type of insurance that involves two or more people. Some examples are home insurance, vehicle insurance, medical insurance, personal accident insurance, unemployment insurance and general insurance.

General Liability

The liability for insurance still rests on the insurance provider. However it is the responsibility of the insurance customer to ensure that everyone else is also covered under the additional insurance coverage.

The liability is a major issue and has been debated in several court cases. In several court cases, the insurers refused to acknowledge additional insurance and their plea was overturned by the court.

In some other cases, the customer was held liable and additional insurance was not honored. As these examples show, the matter depends and can vary from case to case.


Additional insurance is usually not mentioned in contracts. But this trend is rapidly changing and many more contracts are now included all the details about additional coverage like who is covered and the amount of the coverage.

There is also a new format for contracts that specifically mentions everything about additional coverage and provides all the relevant details as well. The new format is becoming increasingly common and we could soon see widespread adoption.

Conditional Limitations

There are several conditional limitations to each case of additional insurance coverage. The additional insurance coverage does not include any accidents that occur during ongoing operations. It also does not include pre-existing insurance coverage, which is treated as separate under the current system of insurance.

Recent Developments

Additional insurance coverage is a relatively new area of insurance. Customers need to remain aware of all the recent developments in this area. This includes new formats for insurance documents, all types of contracts and all the court decisions relating to the insurance coverage.

All these developments have occurred in the past few years and many more developments are possible in the future. The insurance providers are slowly but steadily adapting to all these changes.

Additional insurance coverage is an important are of coverage. This is because insurance for additionally risked persons was not previously a part of most insurance policies. But this is now changing because of practical considerations and because past experience has shown the importance of additional insurance coverage.

Today, most insurers have acknowledged additional insurance coverage and provide for it. It is still the responsibility of the insurance customer to ask for it and to claim it as and when the necessity arises.

Association of Construction & Development