E&O insurance – what about the “additional insureds” ?

So you have an E&O insurance policy and your client or broker asks to be added as an additional insured. Sounds reasonable, because they should also be covered if you mess up, right?

Well not so fast. Your E&O insurance policy is designed to cover you for your wrongful acts. There’s no telling that your E&O carrier would necessarily cover someone else just because they’re an additional insured.

There’s also the pesky “insured vs. insured” exclusion which says that no coverage is provided for a claim made by an insured against another insured. Well, what if your client or broker sues you for malpractice and they’re on your policy as an additional insured? Shouldn’t you be covered for that?

So therefore, be careful before you add anyone on your policy as an additional insured. It may result on a loss of coverage for you.


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