Contact Us   |   Chat Now

Should You Add An Additional Insured To Your Full Frame Insurance Policy?

One of the many benefits of Full Frame Insurance is the ability to add additional insureds for a really affordable price. However, for many of our Full Frame customers, adding that extra $15 expense isn’t necessary.

Why? Well, the answer to that begins with an understanding of what, exactly, an additional insured is.

Okay…Well, What Is It, Then?

For many people, their understanding of photography insurance and how it functions is based on what they know from personal experience. For that reason, I’ll try to use auto insurance as a way to help you understand.

With your car insurance, you’re usually able to add multiple drivers to your policy. Often, you’re adding a spouse or children (of driving age, of course). For each additional driver, the premium goes up.

Sounds kind of like adding an additional insured, right?

Kind of.

On an auto policy, the additional drivers are actually covered under the policy itself. So, if your son, for example, drives the car into a tree, the policy should cover the damages.

With an additional insured, they aren’t covered if they make a mistake. They’re covered if you make a mistake.

Here’s an example: let’s say you’re a photographer and you set up a photo shoot at a wedding venue. The venue requires that you add them to your policy as an additional insured. While you’re photographing a bride, her new mother-in-law stumbles over your camera case, falls, and tears a tendon in her ankle. Because of her injuries, the mother-in-law decides to file a personal injury claim.

Since the incident occurred at the wedding venue, the mother-in-law decides to include them in the suit, hoping to get more money. But, because you added the venue as an additional insured (and because the venue was not responsible for the incident), they should be protected under the terms of your policy.

Now, here’s an example where the wedding venue wouldn’t be covered under your policy, even though they are named as an additional insured: The bride arrives at the venue and, while walking up a carpeted flight of stairs, she trips on a tear in the carpet and breaks her arm while catching her fall. Because the wedding venue owners are at fault (they should have fixed that carpet!), your policy doesn’t protect them. They would need their own business liability policy to protect their finances from a lawsuit.

So When Should I Add an Additional Insured?

The short answer to this question is: only when it’s requested.

But here’s a little bit of a longer explanation. Typically only certain people or business organizations will ever request that you add them as an additional insured. These include:

  • A landlord, if you’re renting commercial property
  • A business that hires you as an independent contractor
  • A national park, state park, or regional park
  • An event, convention, or festival, wedding venue, or school

But, just because you CAN add these groups doesn’t meet you should. Again, only add them if they request it.

For example, just because you’re renting a property or space doesn’t mean you must automatically add your landlord. Again, unless he or she requests it, your landlord doesn’t need to appear anywhere on your policy. Same with businesses who hire you as an independent contractor. This is because your policy follows you, and it protects you regardless of where you work.

Basically, just because you have a business relationship with someone does not require that you add them to your policy. If your lease with a landlord ends and you move locations, the policy will still protect you at the new spot. If you contract with multiple businesses, you’re covered by your policy at each of their locations.

To have the policy be valid, we don’t need to know the details of your business relationships, especially since so many of these are of a temporary nature, but once added, they will be permanently reflected on your policy.

That’s why we also recommend when purchasing your policy, that you don’t necessarily list your address as the place where you do business. Instead, you should put either your home or mailing address, since these are likely more permanent.

So, Is There Anyone I Shouldn’t Add as an Additional Insured?

If anyone else asks you to add them as an additional insured besides the three groups listed in the previous section, be careful before you spend the money to include them on your policy. In fact, there are certain people you will never want to add as additional insureds, even if they ask about it. These include:

  • Family members who help you out with your photography services
  • Friends who provide similar services
  • Business associates who work at the same location

These types of individuals don’t qualify for additional insured status, and if they are named in a claim, your policy won’t cover them. So save yourself the $15 or $30 expense, otherwise, you’re paying for something that doesn’t offer any benefit.

Often, these people request that you add them because they misunderstand how an additional insured works. They think they’ll be covered if they make any mistake. But remember, additional insureds are only protected for mistakes you make. To be covered for their own mistakes, they’ll need their own insurance policy.

But What About Where It Says “Unlimited” Additional Insureds? If It’s Unlimited, Why Can’t I Add 10 People?

Let’s break down the logic here. First of all, insurance is a business.

Unlimited additional insureds isn’t a loophole that lets you add a bunch of people to your policy so you can split the cost of the premium between you. Let me explain with a little math.

If you add 10 of your business associates as additional insureds, you have a $114 premium ($99 + $15 for each additional insureds). Including you, that’s 11 people contributing toward that premium, which means each person is only paying $10.36 per year for really high-quality insurance coverage.

Would you ever charge so little for your services? It just doesn’t make business sense, and if you’d never do it, why would we?

For our second point, remember that an additional insured isn’t protected for the things they do. They’re protected for the things you do that could affect them in a lawsuit.

If you really think about it, does it make sense that for only $114, a policy would cover the actions of multiple people? The more people there are on a policy, the more risk there is that one of them will make a mistake. And the more risk there is, the more your insurance will cost, which is why a Full Frame policy only covers your actions.

In order to keep our insurance affordable, but still offer fantastic protections and competitive limits, we have to restrict how many people’s liability we cover.

Additional Resources

Looking to expand your photography business? Start with a custom-made photography website from Pixpa. Here at Full Frame, we’re always looking to provide our photographers with additional resources to help their businesses. That is why we partnered with Pixpa. As a website-building platform, Pixpa helps photographers create websites that work as portfolios, purchasing platforms, and client galleries. Start designing today!

Author

Related Articles

Cyber Liability

Cyber liability insurance protects your business from the cost of first- and third-party claims that arise from a cyber security breach within your business. Cyber crime has become a common threat for businesses both big and small. If you collect or store business information online on a computer, tablet, or mobile device, we highly suggest including this additional protection to your policy.

'Failure to Deliver' Coverage
(Professional Liability)

‘Failure to Deliver’ Coverage, also known as Professional liability insurance, can protect your business from the cost negligence claims that arise from professional errors and omissions, like giving bad instruction or failing to provide necessary information on a subject. If you teach classes or run demonstrations as part of your business, we strongly recommend this additional coverage option.

Additional Insureds

When you add a person, event, or organization to your policy as an additional insured, they receive protection if they are named in a suit due to a covered business-related loss/claim because of your actions or operations.

Additional insured status cannot be granted to a friend or co-worker as an extension of your policy. Each individual must purchase their own policy to obtain liability coverage.

A written contract, such as a venue, studio rental, or employment contract is required to add another party as additional insured.

General Liability

General liability insurance can protect your business from the cost of third-party bodily injury and property damage claims, like if a client trips on your business equipment and injures themselves. It also protects against the cost of copyright infringement claims, personal and advertising injury claims, and more.

Damage To Rented Premises

This coverage can protect your business from the cost of claims arising from damages done to rented spaces, like a studio or event booth. It’s common for property owners and event organizers to require businesses to list them as additional insureds on a policy before renting a space. Full Frame provides unlimited additional insureds for just $30.

Camera Equipment Coverage

Also known as inland marine insurance, camera equipment coverage can protect your business from the cost of repairing or replacing damaged or stolen business equipment—including camera bodies, lenses, lighting equipment, and more. Our policy can protect against claims that occur at home, on a job and anywhere in between. Full Frame offers multiple coverage options for equipment insurance based on your business needs.