Which endorsement is most commonly used to reduce gaps in protection by extending coverage to others who rely on the insured's policy?

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

Answer: (B)

Extending protection to parties that rely on the insured’s policy is achieved by adding them as an Additional Insured. This endorsement broadens the insured’s liability coverage to include the third party, so if a claim arises from the insured’s operations, the Additional Insured has coverage and can receive defense under the insured’s policy. It’s a common requirement in contracts with vendors, clients, landlords, and partners who want protection for their own risk exposure. The coverage for the Additional Insured is usually aligned with the insured’s limits and subject to the policy’s terms, though some arrangements can make it primary or noncontributory depending on the contract.

Why the other endorsements don’t fit: Primary & Noncontributory makes the insured’s policy primary and not contributory with other carriers, but it doesn’t extend coverage to third parties relying on the insured’s policy. Waiver of Subrogation waives the insurer’s right to recover from a third party after paying a claim, not expanding coverage to new insureds. Newly Acquired Organizations extends coverage to newly acquired entities rather than to other parties who rely on the insured’s policy.