An additional insured, named insured and interested party are different concepts, even though the terms are sometimes used interchangeably in contracts.
A named insured is a person or entity specifically insured under the policy.
An additional insured is another party added to the policy as an insured for a defined purpose or interest, where the insurer agrees to do so.
An interested party is generally noted as having an interest in the policy or insured property, but is not necessarily insured under the policy.
For engineers, this distinction matters because contracts sometimes ask for a principal, client or contractor to be added as an additional insured under Professional Indemnity Insurance.
That may not be appropriate or available under every PI policy. Professional Indemnity cover is primarily designed around the professional services of the insured engineering practice, and adding another party can alter the intended risk.
Engineers should therefore avoid agreeing to insured-party wording in a contract before checking what the insurer can actually provide.
Being noted as an interested party is not the same as becoming an insured.
