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By Liesl Wrolstad, EAA Insurance Administrator
September 2015 - There is no doubt that by now most of our chapters have seen the “Is any person or organization requesting additional insured status under this insurance?” option listed on our request-for-insurance form. What does it really mean to add an entity as an additional insured? Is there any harm in clicking yes? Sometimes there are more questions surrounding this option than you may think.
First, the definition of an additional insured is a person or organization other than the chapter that enjoys the benefits of being insured under the Chapter Insurance Plan. This means the chapter is essentially extending its insurance benefits to a third party.
This extension, or sharing, of insurance is necessary in some cases. Frequently, an airport will require it is listed as an additional insured in order for the chapter to conduct an approved event on the airport premises. This situation is common with hangar owners as well. Requests like this that come from property owners often can easily be accommodated. However, it should only be included on the chapter’s request for insurance if these entities are specifically asking. Though it is an easy request to fulfill, it shouldn’t be assumed that it is necessary in all cases.
There are also instances where the need to add an entity as an additional insured is a little less straightforward. For instance, if the chapter is participating in another organization’s event, and that organization is requesting additional insured status, it is not automatically granted. In this case, we would need to see a contract or agreement outlining the chapter’s role, the primary sponsor’s role, and the insurance requirements before additional insured status is considered.
Of course, there are also times where additional insured status cannot be extended to another organization. Just like you wouldn’t share your homeowner’s insurance with your neighbor, the Chapter Insurance Plan can’t be shared with another organization for activities for which that organization is responsible. For example, if the chapter is conducting an approved event and another entity, such as a pilot club, is participating by providing an approved activity, we are unable to include this group as an additional insured for its role in the event.
Though filling out the form is a quick and easy process, this is an important step that needs careful consideration. The Risk Management office is always here to help you through any questions or unique situations you may have. As always, do not hesitate to contact me at 920-426-6106 or firstname.lastname@example.org.