Additional Insured
- Thread starter ed1
- Start date
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Per my Ins Agent - it only allows them to get notified if the policy expires / change in policy
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Dont think they can change anything on your policy, only an authorized officer in your firm can do that
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There is a difference between being "Additionally Insured" and a "Certificate Holder".
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Not only brokers are asking for this, many shippers are as well. Being a certificate holder only provides you with notice when the policy expires or changes in some way. Being an additionally named insured would mean that any action brought against the carrier that also included the shipper or the freight broker would be defended by the carriers insurer. An additional named insured is not the primary insured.
Too much fraud going on where carrier authorities get compromised and these fraudsters make similar emails to book loads.
We've gotten used to brokers requesting insurance directly from our insurance broker... sometimes they take a while which sucks when we are urgently waiting for the load tender.
We've gotten used to brokers requesting insurance directly from our insurance broker... sometimes they take a while which sucks when we are urgently waiting for the load tender.
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As I mentioned earlier, there are many large shippers who insist on being an additional insured. If a carrier experiences a catastrophic motor vehicle accident, particularly in the US and especially involving fatalities, rest assured the injured parties or the estates of the deceased are going to commence actions against the carrier involved, the broker who provided the freight, the owner of the goods and pretty much anyone else they can hit with their “shotgun”. The additional insured is defended by the carriers insurer in this situation. The additional insured endorsement is usually not prohibitively expensive.
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another thing w being an additional named insured or just AI, the Additional insured can bypass the claims process and submit directly to the insurer. this leaves no time or action for negotiations on claims.
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You need to have a heart to heart discussion with your insurance company. The broker may not fully understand (even though he should) what the difference is between, Certificate Holder, Additional Insured, Additional Named Insured. Each one of these have different implications on your policy and that definition changes between the US and Canada.
Certificate Holder - the safest and you can easily give these out. The insurance company is supposed to inform all certificate holders if there is a change or cancellation of the policy.
Additional Insured - some risk involved. This allows the additional insured party more rights. The insurance company should be very explicit on the certificate for the coverage it is extending to the additional insured. If it is open ended, the result could mean a loss payout for any number of issues. Brokers want to be named Additional Insured because should a carrier make a mistake, they don't want that mistake to eventually come back to the broker. Brokers should inquire with their legal team as to what the certificate should read to extend this coverage.
Example.
XYZ Lease is added as Additional Insured/Loss Payee, but only with respect to the Automobile Policy and their interest as Lessor in the noted vehicle and as per the OPCF 5/5a endorsement specifically for VIN AAA123456789
Additional Named Insured - very dangerous. This will insure the Additional Named party for everything that you are insured for. If you are a fleet this will extend that coverage to their vehicles and any other liability interests. This should only be used for company and maybe a parent or sister company and the insurance company should be asking a lot of questions about this and the relationship between the insured and the additional named insured.
The problem is that the broker is the one that can make these changes without the insurance company knowing about it (at least for some time). Some brokers not very educated about these things and can easily make the mistake between Additional Insured and Additional NAMED insured. In a worst-case scenario, AAA Carrier asks to add XYZ Carrier as an additional insured, but the broker accidently places the wording as Additional NAMED insured and places no specifics. XYZ Carrier can make a claim against the insurance policy of AAA Carrier for any claim that XYZ Carrier incurs. It would put the insured at a lot greater risk and will most likely hold up in court. It's a good reason to make sure you have a great broker on your side.
Certificate Holder - the safest and you can easily give these out. The insurance company is supposed to inform all certificate holders if there is a change or cancellation of the policy.
Additional Insured - some risk involved. This allows the additional insured party more rights. The insurance company should be very explicit on the certificate for the coverage it is extending to the additional insured. If it is open ended, the result could mean a loss payout for any number of issues. Brokers want to be named Additional Insured because should a carrier make a mistake, they don't want that mistake to eventually come back to the broker. Brokers should inquire with their legal team as to what the certificate should read to extend this coverage.
Example.
XYZ Lease is added as Additional Insured/Loss Payee, but only with respect to the Automobile Policy and their interest as Lessor in the noted vehicle and as per the OPCF 5/5a endorsement specifically for VIN AAA123456789
Additional Named Insured - very dangerous. This will insure the Additional Named party for everything that you are insured for. If you are a fleet this will extend that coverage to their vehicles and any other liability interests. This should only be used for company and maybe a parent or sister company and the insurance company should be asking a lot of questions about this and the relationship between the insured and the additional named insured.
The problem is that the broker is the one that can make these changes without the insurance company knowing about it (at least for some time). Some brokers not very educated about these things and can easily make the mistake between Additional Insured and Additional NAMED insured. In a worst-case scenario, AAA Carrier asks to add XYZ Carrier as an additional insured, but the broker accidently places the wording as Additional NAMED insured and places no specifics. XYZ Carrier can make a claim against the insurance policy of AAA Carrier for any claim that XYZ Carrier incurs. It would put the insured at a lot greater risk and will most likely hold up in court. It's a good reason to make sure you have a great broker on your side.
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i'm surprised the insurer accepted this, how did your broker convince them to add as addl NI?
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I have a half dozen or so accounts who are additional named insured on our policy as well. Marsh Canada has no problem with it and there is no charge either.
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yea but marsh is the brokerage. im more interested on the insurers side of things. any broker can just blindly add additional named insured on COIs without letting the insurer know.
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Not surprisingly many of the smaller carriers have no experience with claims, do not understand the process and tend to ignore them or think they can handle the smaller claims on their own without involving insurance.
Every time there is a potential claim we advise the carrier to notify their insurance company and get an adjuster assigned. This does not always happen in a timely manner and we are dealing with the claim well after the fact.
Being an additional insured would solve this issue as we would initiate the claim and not wait for the carrier but it is very difficult to get the carrier to add us to the policy.
Every time there is a potential claim we advise the carrier to notify their insurance company and get an adjuster assigned. This does not always happen in a timely manner and we are dealing with the claim well after the fact.
Being an additional insured would solve this issue as we would initiate the claim and not wait for the carrier but it is very difficult to get the carrier to add us to the policy.
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This is because the insurance agent tells the carrier 'if you claim your insurance will go up' - however the insurance agent is there to work for you - what else are you paying for...
So open the claim and once everything is deiceded you can elect to not claim and pay out of pocket or pay the deductible.
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I'm sure increased insurance costs are part of the equation but I generally find the smaller carriers are clueless when when it comes to claims.
I would much rather deal with an adjuster and if no claim is filed you can always pay the adjuster directly
I would much rather deal with an adjuster and if no claim is filed you can always pay the adjuster directly
