Is Blanket Additional Insured Endorsement Language and Why Is It Important?
There is nothing like the feeling of pride
that comes after a long and successful weekend of selling goods at a market or event. As a small
business owner, it can be a truly gratifying experience to see all of your hard
work pay off at an event or festival where you can reach a whole new market of
people and showcase your products. But whether you are a baker, an artist, a
farmer, a jeweler, a seamstress, or any kind of small business owner selling
goods from a booth, you will want to protect your business against the risks associated
with attending shows in a cost-effective way.
Renting a booth at events brings about unique
risks because of the potentially vast number of third-parties and locations
that require coverage. Without the right kind of wording in your Business Owners
Policy (BOP), you could be underinsured or forced to pay extra to
extend your coverage to each event you work. Some insurance companies offer
what is known as blanket additional
insured endorsements, which can extend liability coverage to multiple
third-parties without having to pay extra. Continue reading to learn about
blanket additional insured endorsements and whether this language can save your
small business money!
Blanket Additional Insured Coverage?
Blanket additional insured coverage is wording
in a Business Owners Policy offered by some companies that allows the extension
of liability coverage to a third-party, who is requiring liability coverage
because of a written contract in place. The word ‘blanket’ refers to the
extension of liability coverage to all additional insureds who
contractually require it—without having to pay extra for each third-party to
whom liability coverage is extended.
This Language Important?
Having blanket additional insured endorsement
wording in your coverage can make all the difference if your small business is
operating a booth out of multiple locations that all require liability insurance.
Here’s an example: Joe has a small farm and
sells his fruits and vegetables at a local farmers market every week. The
organizer of the farmers market requires a written contract
with Joe for the booth space he rents. The contract also requires Joe to list
the farmers market as an additional insured under the liability section of
Joe’s Business Owners Policy. If Joe has blanket additional insured coverage,
Joe’s insurance agent could issue a certificate of
insurance listing the farmers market as an additional insured under Joe’s
liability insurance at no charge. If Joe did not have blanket additional
insured coverage, he may have to pay an additional amount each time he needs to
add an additional insured.
Liability coverage is invaluable for a
business owner if a patron brings a lawsuit against the business. Because
blanket additional insured coverage can automatically extend coverage to event
organizers making them additional insureds (if there is a written contract
requiring them to do so), the business owner or the event organizer
could file a claim to the business owners insurance
carrier rather than incurring all expenses out-of-pocket.
Have This Coverage Now?
Blanket additional insured coverage is offered
by some insurers at no additional cost as part of their Business Owners Policy. Some carriers offer this coverage
for an additional charge, and other carriers do not offer this coverage at all.
If you are a business owner who operates out of a booth at events, it is a good
idea to contact your agent to discuss whether this language is in your policy
already, or even available for purchase.
Operating a business is no small feat and we
know how important it is to support our small businesses any way we can.
Contact an agent today to discuss our Compass BOP and whether a blanket
additional insured coverage could save your business money!