October 3, 2013. How to properly manage risk between contracting parties is important. The purpose of providing for an additional insured under liability coverage provisions is to protect the rights of another party that might become legally liable for the actions of the named insured. For instance, a landlord might become entangled in a lawsuit caused by the actions of his tenant. By naming the landlord as an additional insured, the named insured extends coverage, especially defense costs, to the landlord. The tenant's insurance company would have to defend both the named insured and the additional insured. The owner of a premises who hires contractors to perform work on the property should require the contractor to provide liability insurance naming the property owner as an additionally named insured. If an accident occurs resulting in injury or death, the contractor's insurance coverage will also protect the property owner's liability exposure up to the limits of that policy. For more information contact the Goosmann Law Firm at info@goosmannlaw.com or by calling 712.226.4000.