TradeGuardAdditional insured vs. loss payee
Additional insured extends liability coverage to you if you're sued over the sub's work. Loss payee is on the property side: it pays a party with a financial stake in specific property that's damaged. For subcontractor liability you want additional insured, not loss payee.
Liability coverage. If someone is hurt or property is damaged because of the sub's work and you get named in the claim, the sub's liability policy responds for you.
Property coverage. If specific insured property (say, leased equipment) is damaged, the loss payee (often a lender or lessor with a financial interest) is paid for that physical loss.
They live on different parts of the insurance program. For protection against liability arising from a subcontractor's work, require additional insured. Loss payee does nothing for your liability exposure.
Where the confusion comes from
Both put a third party's name on someone else's policy, so they get treated as interchangeable checkboxes on a certificate. They aren't. Additional insured is about *liability*: lawsuits, injuries, property damage the sub causes. Loss payee is about *property*: who gets the check when covered property is physically damaged. A GC worried about being pulled into a claim over a sub's work needs the liability side.
What to require
For subcontractor risk, require additional insured status on the general liability (and where relevant, umbrella) policy. Loss payee only becomes relevant when you have a financial interest in specific physical property covered under someone's property policy, which is a different conversation from subcontractor compliance.
When a subcontractor uploads a certificate, TradeGuard reads it and records whether you're listed as an additional insured, and the exact name shown. Set “require additional insured” on a trade, and any sub whose COI doesn't include it is flagged automatically, so a missing endorsement doesn't slip onto your site unnoticed.
TradeGuard tracks additional-insured status, the named party, and your endorsement notes in one place. It doesn't replace reading the actual endorsement form; always confirm the specific form and edition with your broker.
This is general information, not legal or insurance advice. Endorsement forms, editions, and coverage vary; confirm requirements with your broker and the terms of your subcontract.
FAQ
Can a party be both additional insured and loss payee?+
Yes, on different coverages (additional insured on the liability policy and loss payee on a property policy), but they serve different purposes. For subcontractor liability, additional insured is the one that matters.
Does loss payee protect me if a sub's worker is injured?+
No. That's a liability claim, and loss payee is a property-coverage designation. You'd need additional insured status on the liability policy.
Stop trusting the checkbox
TradeGuard reads every subcontractor's certificate, records whether you're listed as additional insured, and flags the ones that aren't, before they're on your job site.
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