If you work with contracts, there is a good chance you have been asked for one or both of these: additional insured status or a waiver of subrogation. Both are common. Both matter. And both are often agreed to too quickly by people who do not fully understand what they are changing. That is the real problem. These terms are not just insurance jargon buried in a contract. They affect how risk is shared between businesses, what your policy may be asked to do, and what documentation needs to be in place before work begins. This article explains what additional insured status means, what a waiver of subrogation does, how they differ, and why they show up so often in contractor, vendor, landlord, and service agreements. If you want the broader foundation first, start with our Contractors Insurance Explained guide. This page is narrower. It focuses on two contract insurance terms business owners are often asked to provide. What is an additional insured? An additional insured is a person or organization added to another party’s insurance policy for a specific relationship or exposure, subject to the policy’s terms and any endorsement that applies. In practical terms, this usually comes up when one business is hiring another and wants some protection under that other party’s liability policy for claims connected to the hired party’s work. That does not mean the additional insured takes over the policy. It also does not mean every claim is automatically covered. The scope depends on the policy language, the endorsement, the contract, and how the claim arose. The simplest way to think about it is this: additional insured status is one way contracts try to shift or share risk between parties working together. Why do contracts require additional insured status? Because businesses want protection from downstream claims tied to someone else’s operations. A general contractor may require a subcontractor to add the GC as an additional insured.