An additional insured endorsement adds another party, usually your landlord, franchisor, property manager, or an event venue, to your restaurant’s liability policy so that party is protected for claims arising out of your operations or premises. It is what a certificate of insurance refers to when it names someone as additional insured, but the certificate alone does not create coverage; the endorsement on the policy does.
Nearly every restaurant lease and franchise agreement asks for it, and owners often sign without knowing what it means. Here is who asks, which endorsements are used, how to get someone added correctly, and what the endorsement does and does not do.
Who asks restaurants to be named as additional insured
- Landlords and property managers — so a guest who trips in your dining room cannot leave the landlord paying defense costs alone.
- Franchisors — because injured customers often sue the brand along with the franchisee.
- Shopping centers and food halls — which may require both the owner and the management company on your policy.
- Event venues and festival organizers — when you cater or vend off-site.
- Delivery or marketplace platforms — some merchant agreements ask for it.
- Not usually lenders — a bank financing equipment typically needs to be a loss payee on your property coverage, which is a different endorsement.
The endorsement forms you will see
Carriers use standard ISO forms or their own versions. The name on the endorsement matters because each one grants coverage differently.
- Managers or Lessors of Premises (ISO CG 20 11) — covers a landlord for liability arising from the part of the premises leased to you.
- Grantor of Franchise (ISO CG 20 29) — covers the franchisor for its liability as grantor of your franchise.
- Designated Person or Organization (ISO CG 20 26) — a general form that names a specific party, often used for venues.
- Blanket additional insured — automatically covers anyone you agreed to add in a written contract, so you do not have to schedule each party by name.
- Primary and non-contributory wording — makes your policy pay first without seeking contribution from the other party’s insurance; many leases require it.
- Liquor liability additional insured — landlords of bars and restaurants that serve alcohol often want to be added to the liquor policy too, which is a separate endorsement.
How to get someone added the right way
- Read the contract’s insurance section and copy the exact wording, including primary and non-contributory, waiver of subrogation, and notice-of-cancellation requests.
- Send your agent the party’s full legal name and address as it appears in the contract; a management company and a property-owning LLC are different entities.
- Ask whether your policy already has a blanket endorsement that applies when required by written contract, or whether the party must be scheduled by name.
- Confirm the same requirements on the liquor liability and umbrella policies if the contract applies to them.
- Have the agent issue a certificate that references the endorsement, and keep a copy of the endorsement itself in your files.
What additional insured status does and does not do
The additional insured is covered only within the scope of the endorsement, typically claims arising from your operations or your leased premises. It usually does not cover the other party’s own independent operations. It also draws from your policy limits: if a landlord and your restaurant are both sued over the same incident, defense and settlement for both can come out of the same per-occurrence limit. That is one reason to review your limits, covered in how much liability insurance a restaurant needs.
Two restaurant examples
A sushi restaurant in a Maryland mall. The lease names both the mall owner and its management firm and requires primary and non-contributory coverage. The policy’s blanket additional insured endorsement applies to anyone required by written contract, so both are covered once the lease is signed, and the certificate reflects both names.
A franchisee opening in North Carolina. The franchise agreement requires the franchisor as additional insured under a grantor-of-franchise endorsement on the general liability, liquor, and umbrella policies. The first certificate was rejected because only the general liability showed the franchisor. Our FDD insurance requirements checklist helps avoid that.
Mistakes that cause certificate rejections or coverage gaps
- Checking the additional insured box on a certificate without the endorsement on the policy.
- Misspelling or shortening the party’s legal name.
- Forgetting the liquor liability or umbrella policy.
- Relying on a blanket endorsement when the contract was signed after the incident; most blanket forms require the written agreement to exist first.
- Assuming the additional insured has its own separate limits.
Certificates without the wait
Provident Financial Group compares multiple carriers on one application and checks that each quote carries the additional insured endorsements your contracts demand. After binding, you get live certificates of insurance you can issue to landlords, franchisors, and venues. Call (866) 964-6660 or see our restaurant certificate of insurance page.
Frequently asked questions
Is an additional insured the same as a certificate holder?
No. A certificate holder simply receives the certificate. An additional insured has actual coverage under your policy through an endorsement.
Does adding an additional insured raise my premium?
Many restaurant policies include a blanket additional insured endorsement, while others charge for each scheduled party. Ask how your specific policy handles it.
Does the additional insured share my limits?
Yes. Claims paid on behalf of an additional insured reduce the same limits that protect your restaurant.
What does primary and non-contributory mean?
It means your policy responds first to a covered claim and does not ask the additional insured’s own insurer to share the loss.
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