Think of the declarations page as the deed. The business named there is the named insured: the policy is written for it, it gets everything the coverage form grants, and if it is listed first it is responsible for the premium, receives return premiums, can cancel, and can change the policy with the insurer’s consent. An additional insured is a guest. A general contractor, landlord or project owner asks to be added, the insurer attaches an endorsement, and that party can look to your policy for claims caused at least in part by your work or operations, within what the endorsement says. It isn’t responsible for the premium, can’t change the policy, and draws on the same limits you do. Your own other companies need to be named on the declarations, not added as additional insureds.
Who counts as the named insured
The ISO general liability form, CG 00 01 (04 13 edition), says “you” and “your” mean the Named Insured shown in the Declarations and anyone else qualifying as a Named Insured. Section II adds others by how the business is listed:
- Individual: you and your spouse, only for a business you solely own.
- Partnership or joint venture: the entity, plus its members, partners and their spouses, only for the conduct of the business.
- LLC: the company, its members for the conduct of the business, and its managers for their duties as managers.
- Corporation or other organization: the organization, its executive officers and directors for those duties, and stockholders for their liability as stockholders.
- Employees and volunteer workers: insureds without being named, for work they do for the business, with exceptions.
Side by side
- Who they are: Named insured: designated by name in the declarations. Additional insured: not automatically an insured; added at the named insured’s request.
- How they get on: Named insured: the declarations. Additional insured: an endorsement adding the party in its schedule.
- What’s covered: Named insured: everything the coverage form grants, subject to its exclusions. Additional insured: only liability caused, in whole or in part, by the named insured or those acting for it, in the situations the endorsement lists.
- Tie to a contract: Named insured: none needed. Additional insured: on the ISO endorsements below, only to the extent permitted by law and, if a contract requires the coverage, no broader than that contract.
- Limits: Named insured: the declarations limits. Additional insured: if a contract requires the coverage, the lesser of the contract amount and the available limits, out of the same limits.
- Premium and control: Named insured: the first named insured handles premium, cancellation and changes, as below. Additional insured: none of these.
- Claim duties: Named insured: must see that the insurer is told of occurrences, offenses and any claim or suit against any insured. Additional insured: if involved in the claim, it shares the duties of “you and any other involved insured,” such as sending legal papers and cooperating.
The first named insured runs the policy
A policy can list several named insureds. Under the ISO Common Policy Conditions, IL 00 17 (11 98 edition), the one listed first:
- Cancellation. It can cancel with advance written notice. If the insurer cancels, the base form gives it at least 10 days’ written notice for nonpayment of premium and 30 days for any other reason, and any refund goes to it.
- Makes changes. It can change the terms with the insurer’s consent, and terms change only by the insurer’s endorsement.
- Pays. It is responsible for payment of all premiums and is the payee for any return premiums.
Under CG 00 01 it also gets audit notices and audit refunds, must keep the records needed to compute premium, and receives nonrenewal notice at least 30 days before expiration. State law can require longer notice; Illinois, for example, requires 60 days for nonrenewal. Other named insureds share the coverage, not these jobs.
Your other companies vs. your clients
If you own a second LLC or are in a joint venture, CG 00 01 says no person or organization is an insured for the conduct of any current or past partnership, joint venture or LLC that isn’t shown as a Named Insured in the Declarations. The endorsements below don’t close that gap; they only reach liability caused at least in part by you.
A company you newly acquire or form and own or hold a majority of (not a partnership, joint venture or LLC) counts as a named insured if no other similar insurance is available to it, but only until the 90th day after you acquire or form it or the policy ends, whichever is earlier.
A client is different: the general contractor, landlord or owner wants protection when your work pulls it into a claim, which is the additional insured’s job. Watch contract wording: IRMI says “additional named insured” has no uniformly agreed meaning and often confuses contracting parties. How additional insured endorsements work for contractors.
What the common endorsements cover
- CG 20 10 04 13 covers a scheduled party for liability caused, in whole or in part, by your acts or omissions, or those acting for you, in your ongoing operations for it at the scheduled location. It excludes injury or damage occurring after all project work is completed or the part of your work that caused it is put to its intended use.
- CG 20 37 12 19 covers a scheduled party for bodily injury or property damage caused, in whole or in part, by your work for it at the scheduled location, once that work falls into the products-completed operations hazard.
- CG 20 26 04 13 covers a designated party for liability caused, in whole or in part, by your acts or omissions, or those acting for you, in your ongoing operations or with premises you own or rent.
Shared limits, separate insureds
Adding insureds doesn’t add money. CG 00 01 caps payment at the declarations limits regardless of the number of insureds, and each endorsement above says it shall not increase the limits. A claim paid for your general contractor uses your limits. How per-occurrence and aggregate limits work.
Under the Separation of Insureds condition, except for the limits and the first named insured’s assigned rights and duties, the insurance applies as if each named insured were the only one, and separately to each insured sued or facing a claim.
Common questions
Does an additional insured pay any of the premium?
Not under the policy. The ISO Common Policy Conditions make the first named insured responsible for payment of all premiums and the payee for any return premiums.
Can an additional insured cancel or change my policy?
No. Among the insureds, the first named insured shown in the declarations is the one that can cancel, and it can change the terms only with the insurer’s consent, by endorsement.
Are my employees named insureds?
No, but they are insureds without being named. CG 00 01 makes employees insureds for acts within the scope of their employment or while doing duties related to your business, with exceptions such as injury to a co-employee.
Should my second LLC be an additional insured on my policy?
Not if you want its own operations covered. The form gives no coverage for the conduct of an LLC, partnership or joint venture that isn’t shown as a named insured in the declarations, so the question for the underwriter is adding it there.
Does adding an additional insured raise my limits?
No. CG 20 10, CG 20 26 and CG 20 37 each say they don’t increase the limits, and the coverage form’s limits are the most it pays no matter how many insureds there are.
Sources
- ISO CG 00 01 04 13, Commercial General Liability Coverage Form (posted copy)
- ISO IL 00 17 11 98, Common Policy Conditions (insurer form library specimen)
- ISO CG 20 10 04 13, Additional Insured – Owners, Lessees or Contractors – Scheduled Person or Organization (NYC sample)
- ISO CG 20 37 12 19, Additional Insured – Owners, Lessees or Contractors – Completed Operations (IIAT copy)
- ISO CG 20 26 04 13, Additional Insured – Designated Person or Organization (NYC sample)
- IRMI glossary: first named insured
- IRMI glossary: named insured
- IRMI glossary: additional insured
- IRMI glossary: additional named insured
- Illinois Insurance Code, 215 ILCS 5/143.17a, Notice of intention not to renew (Illinois General Assembly)
General information about named and additional insured status under ISO commercial general liability forms as of October 2026, not legal advice; the forms, editions and endorsements on your own policy control, and insurers may use their own wording. Coverage depends on underwriting and the terms, conditions and exclusions of the policy actually issued.