Which of the following best describes who can be an additional insured?

• A. The insured's customers.
• B. The named insured.
• C. The insured's employees.
• D. A third party protected by endorsement or contract requiring coverage.

Answer: (D)

An additional insured is someone who is added to the insured’s policy by an endorsement or by a contract that requires coverage. This turns a third party into a protected party under the insured’s liability coverage, even though they aren’t the policyholder. The contract or endorsement specifies that protection, so the insurer will defend and indemnify them for claims arising from the insured’s operations, subject to the policy’s terms.

That’s why this option is the best description: it highlights that coverage is extended to a third party only when a contract or endorsement requires it. By contrast, the policyholder (the named insured) is the one who holds the policy, not an additional insured; and employees are generally covered under other provisions (like workers’ comp) unless a separate endorsement explicitly adds them as additional insureds. Customers aren’t automatically added as additional insureds unless the contract or endorsement calls for it.