Who can be considered an additional insured in an insurance policy?

An additional insured is an individual or entity that is added to an insurance policy, allowing them to have coverage under that policy's terms. This inclusion provides protection for the additional insured against certain risks and liabilities related to the primary insured’s activities.

A mortgage company often has an insurable interest in the property it finances. As such, it can be included as an additional insured on the property owner's insurance policy. This ensures that if there are damages to the property or if any liability issues arise, the mortgage company is protected, given its financial stake in the property. Additionally, having the mortgage company as an additional insured helps ensure that their investment is safeguarded, as they stand to lose if the property is damaged or destroyed.

In contrast, the primary insured is the primary policyholder and cannot be considered as 'additional,' as their coverage is inherent to the policy itself. While insurance agents can facilitate the addition of other parties to a policy, they typically are not covered as additional insureds unless specified. Furthermore, the notion that no one can be an additional insured is incorrect because policies are often structured to extend coverage beyond just the primary insured.