<P> The costs associated with the risk are returned to the party most able to control the risk of loss, the subcontractor . Similarly, manufacturers of products often wish to cover the sellers of the products as additional insureds under the manufacturer's liability policies . This helps induce the seller to promote the sale of the products, because the seller knows that any product liability lawsuit against the seller will be covered by the manufacturer's liability insurance . </P> <P> The cost of adding an additional insured to a property or liability insurance policy is generally low, as compared to the costs of the original premium . The underwriting departments of insurance companies, rightly or wrongly, often view the additional risk associated with additional insureds as marginal . Additional insurance coverage and endorsements are the subject of frequent disagreements, misunderstandings, and litigation . The disagreements are often about whether the additional insurance coverage should cover "independent negligence" by the additional insured, or should only cover liabilities caused by the named insured's acts . </P> <P> Generally, additional insured clauses are worded in broad terms, such as "any person or organization whom you (the named insured) are required to add as an additional insured on this policy under a written contract...that person is only an additional insured with respect to liability arising out of' your work' for that additional insured ." (CG 70 48 04 02) The clauses often include conditional limitations, such as limiting coverage to claims arising during the "ongoing operations" of the named insured, unless contracts require otherwise . And, they often contain assertions that they will be excess to other insurance policies (the "Other" Insurance problem). These can conflict with opposite provisions in other policies, leading to mutual repugnance of the Other Insurance clauses . Thus disputes often arise based on the relative responsibility of an insured in causing an incident, and the relative liabilities of their respective insurers . These disputes are further complicated by the fact that some of the original contracting parties may have contractually agreed to indemnify other parties . These indemnifications, in turn, can be liabilities to be covered by the policies pursuant to "insured contract" coverage . Courts in different states decide these disputes differently, depending on the unique facts of each case and the law of that particular state . Following the general rule that insurance policies are broadly interpreted in favor of coverage, such disputes are often resolved in favor of maximizing coverage for every insured . </P>

What does it mean to be an additional insured