Glossary · Insurance agency commissions
Additional insured
An additional insured is a person or organization that is not the named insured but has been added to the policy as an insured, usually by endorsement, most often because a contract (a lease, a construction agreement, a vendor deal) requires it.
What it means
Additional insured status is created by the policy, not by paperwork around it. Texas Department of Insurance guidance on certificates of insurance addresses a holder who wants to be named as an additional insured when the policy has only a blanket endorsement: “May the certificate name the holder as an additional insured? No, though the certificate can state that the policy contains a Blanket Additional Insured endorsement.”
How it works: the client’s customer or landlord asks to be covered. The agency checks whether the policy already has a blanket (automatic) additional insured endorsement or asks the carrier for a scheduled one naming that party. As Chris Boggs of Big “I” Virtual University told IA Magazine, “ISO offers various automatic additional insured endorsements, and they differ greatly.” A certificate holder who is not added this way is not an insured.
Why it matters for agency commissions
An additional insured endorsement is a mid-term change. Some carriers charge a flat premium for each scheduled additional insured, some include a blanket endorsement at no charge, and some charge once for the blanket form. When there is a charge, it is premium, so commission should follow at the policy’s rate; when it is billed as a fee, it usually carries none. Contractors with many jobs can produce a steady run of small endorsements that are easy to miss.
How it shows on a commission statement
A charged additional insured endorsement appears as an endorsement line on the policy number, often small, with commission at the policy’s rate. A blanket endorsement added at no charge leaves no line at all. Look for endorsements issued in your agency system that never reached a statement.
Example
| Policy | Transaction | Premium | Rate | Commission |
|---|---|---|---|---|
| EX-69204 | AI endorsement, owner A | 150.00 | 15% | 22.50 |
| EX-69204 | AI endorsement, owner B | 150.00 | 15% | 22.50 |
| EX-69204 | AI endorsement, owner C | 150.00 | — | — |
| Total | 450.00 | 45.00 |
Three endorsements were issued; the statement paid commission on two. The missing $22.50 is the question to ask. Commission rates on this page are invented; your agency agreement and commission schedule set the real ones.
Commonly confused
- An additional insured has coverage under the policy; a certificate holder only receives evidence of coverage.
- The named insured buys the policy and holds the main rights under it; an additional insured does not.
Common mistakes to check
- Treating a certificate that lists a party as proof that the party was added to the policy.
- Assuming every additional insured endorsement is free; some carriers charge premium for each one.
- Missing commission on small endorsement lines that arrive months after the endorsement was issued.
Questions
What is an additional insured in insurance?
A person or organization added to someone else’s policy as an insured, usually by endorsement, often because a contract requires it. It is not the named insured.
Does a certificate of insurance make someone an additional insured?
No. Texas Department of Insurance guidance says a certificate cannot name a holder as an additional insured unless the policy provides it; status comes from the policy and its endorsements.
Does an agency earn commission on an additional insured endorsement?
If the carrier charges premium for it, commission normally follows at the policy’s rate. A blanket endorsement included at no charge produces no premium and no commission.
What is a blanket additional insured endorsement?
An endorsement that grants additional insured status automatically to parties that meet its conditions, such as those a written contract requires, without naming each one.
Sources
- Texas Department of Insurance, Certificates of Insurance Frequently Asked Questions. Retrieved October 14, 2026.
- IA Magazine, COI Requests: Is There a Blanket Additional Insured Endorsement?, October 12, 2018. Retrieved October 14, 2026.
Lapidar is commission reconciliation software for independent insurance agencies, in its founding pilot. Related: certificate holder.