'Additional insured' and how is it typically added?

• A. A person automatically covered without endorsement.
• B. A third party protected by the insured's policy, added by endorsement or contract requiring coverage.
• C. The insured's relatives.
• D. The insurer's employees.

Answer: (B)

An additional insured status means another party is protected under the insured’s liability policy. This protection isn’t automatic; it’s added through an endorsement to the policy or via a contract that requires coverage. The typical scenario is a third party, such as a client or project owner, who wants to be covered for liability arising from the named insured’s operations. The endorsement extends the policy to defend and pay claims for that third party under the terms specified (scope, duration, and limits). The other options aren’t standard ways to obtain this protection—relatives aren’t automatically covered, and the insurer’s employees aren’t added as insureds this way, while endorsements or contract requirements are the correct mechanism.