"Additional Insured" means the association is added to and protected by the insurance policy of another party. This is often done by an endorsement to their policy. It makes the association a first-party claimant in the event the association is sued. In other words, the association can demand that the insurance carrier defend the association.

Vendor Policies. Whenever an association contracts with vendors, it should require proof that the vendor carries commercial general liability insurance and it should require that the association be named as "additional insured" on the policy. As an insured party, if the policy is canceled or not renewed for any reason, the association should receive notice of the loss of coverage.