Which endorsement adds a third party as insured under the policy to extend protection to that party?

• A. Waiver of Subrogation
• B. Additional Insured
• C. Newly Acquired Organizations
• D. Primary & Noncontributory

Answer: (B)

The concept being tested is how an endorsement expands who is covered by a liability policy. The endorsement that adds a third party as insured under the policy is the Additional Insured endorsement. It explicitly extends the policy’s protection to another party—such as a project owner, general contractor, or another contract counterparty—so that if a claim arises from the insured’s operations, that third party is also protected under the policy. This is commonly used to shift risk to the insured’s insurer for people or organizations with whom the insured has contractual obligations.

Waiver of Subrogation. This device doesn’t add insured status to a third party; it only prevents the insurer from pursuing recovery against that party after a loss.

Newly Acquired Organizations. This extends coverage to newly acquired entities of the named insured, not to an external third party who is meant to be insured.

Primary & Noncontributory. This affects how the policy coordinates with other insurers and pain priority, not who is insured under the policy.