Getting Additional Insured Coverage for Brand Deals: What Small Business Owners Need to Know About Quotes and Costs

When your small business lands a brand partnership or sponsorship deal, you'll likely encounter a requirement that seems straightforward but can feel confusing: adding the brand as an "additional insured" on your liability insurance policy. This common contractual requirement protects brands from potential liability claims arising from your work, but understanding how to get quotes and what costs to expect can make the difference between securing profitable partnerships and losing opportunities.

Understanding Additional Insured Coverage in Brand Partnerships

An additional insured is a person or organization who enjoys the benefits of being insured under an insurance policy, in addition to whoever originally purchased the insurance policy, most often where the original named insured needs to provide insurance coverage to additional parties so that they enjoy protection from a new risk that arises out of the original named insured's conduct or operations.

In the context of brand deals, this means the company you're partnering with wants to be protected by your insurance if something goes wrong during your collaboration. For example, if you're creating promotional content for a brand and someone claims they were injured or defamed as a result of your work, the brand wants assurance that your insurance will cover their legal defense costs and any potential settlements [1].

This arrangement isn't unique to brand deals.

General contractors often require subcontractors to name the general and the owner on the subcontractor's policies, so if the general contractor or owner are sued due to accidents arising out of the work of the subcontractor, the subcontractor's insurance will protect the general contractor and owner.

The same principle applies when you're working with brands—they want protection from risks created by your activities [1].

To learn more about the fundamentals, check out our guide on additional insured endorsement explained.

How Additional Insured Endorsements Work

An additional insured often gains this status by means of an endorsement added to the policy which either identifies the additional party by name or by a general description contained in a "blanket additional insured endorsement".

An endorsement is an amendment or rider to a policy adjusting the coverages and taking precedence over the general contract.

There are two main types of additional insured endorsements: [2]

Named Additional Insured: The brand is specifically identified by name in the endorsement. This is common for one-off partnerships or when working with a single brand.

Blanket Additional Insured: The endorsement uses general language that automatically covers any party you're required to add under a written contract. This is more efficient if you work with multiple brands throughout the year.

The endorsement typically limits coverage to liability arising from your work for that additional insured, not for the brand's independent actions.

Coverage is only with respect to liability arising out of 'your work' for that additional insured.

What Types of Insurance Require Additional Insured Coverage [1]

For brand deals, you'll most commonly need to add additional insureds to your Commercial General Liability (CGL) insurance.

Commercial general liability insurance is a broad type of insurance policy which provides liability insurance for general business risks and covers many of the common risks that can happen to any type of business, such as bodily injury or property damage on the business premises or due to the business operations, personal and advertising injury, and medical payments.

Many small business owners start with a Business Owners Policy, which bundles several types of coverage [3].

A business owner's policy - sometimes called a BOP - is a "package" product that typically includes property, business interruption/continuation and liability insurance, and for many small businesses, purchasing a BOP can be a less costly option than buying individual policies.

Depending on your industry and the nature of your brand partnerships, you might also need Professional Liability insurance (also called Errors & Omissions insurance) [4].

Professional liability insurance helps protect professional advising, consulting, and service-providing individuals and companies from bearing the full cost of defending against a negligence claim made by a client in a civil lawsuit, with coverage focusing on alleged failure to perform on the part of, financial loss caused by, and error or omission in the service or product sold by the policyholder.

For content creators and influencers specifically, understanding influencer brand deal insurance requirements is essential before entering into partnerships [5].

Getting Quotes for Additional Insured Coverage

The good news for small business owners is that

the cost of adding an additional insured to a property or liability insurance policy is generally low, as compared to the costs of the original premium.

However, the exact cost varies based on several factors [1].

Factors That Affect Additional Insured Costs

Type of Endorsement: A blanket additional insured endorsement typically costs between $0 and $100 annually as an add-on to your existing policy. Named additional insured endorsements may be charged per certificate, typically ranging from $25 to $50 each time you need to add a specific brand.

Your Industry and Risk Profile: Higher-risk industries or activities will see higher base premiums, which can affect endorsement costs. Content creators, consultants, and service providers generally face lower costs than businesses involved in manufacturing or construction.

Coverage Limits: The liability limits you carry affect your overall premium. Most brand deals require minimum coverage of $1 million per occurrence and $2 million aggregate. If you need to increase your limits to meet brand requirements, this will increase your premium more than the additional insured endorsement itself.

Number of Additional Insureds: If you work with multiple brands throughout the year, a blanket additional insured endorsement is more cost-effective than paying for individual named endorsements each time.

Claims History: Your business's claims history impacts your overall insurance costs, including any endorsements.

Steps to Get a Quote

Review Your Current Policy: Start by checking whether your existing business insurance already includes additional insured coverage. Some policies include blanket additional insured endorsements automatically.
Understand Brand Requirements: Before requesting a quote, obtain the specific insurance requirements from the brand. These typically include:
- Required coverage limits (usually $1 million/$2 million)
- Types of coverage needed (CGL, professional liability, etc.)
- Whether they need to be named as additional insured
- Certificate of insurance requirements
Contact Your Insurance Agent or Broker: Reach out to your current insurance provider first. They can often add an endorsement to your existing policy quickly and at minimal cost. Provide them with:
- The brand's legal business name and address
- The contract or agreement outlining insurance requirements
- The duration of the partnership
- A description of the work you'll be performing
Compare Options: If you don't have business insurance yet, or if your current provider can't meet the brand's requirements, get quotes from multiple insurers. Online insurance platforms have made this process faster, with some providing quotes within minutes.
Consider Annual vs. Project-Based Coverage: If you anticipate multiple brand deals throughout the year, annual coverage with a blanket additional insured endorsement is more economical than obtaining separate policies for each project.

Typical Quote Timelines

For existing policyholders adding an endorsement, quotes and policy updates can often be completed within 24-48 hours. For new policies, expect 3-5 business days for underwriting and approval, though some insurers offer instant or same-day coverage for straightforward risks.

Understanding Certificate of Insurance Requirements

Once you have the additional insured endorsement in place, brands will typically request a Certificate of Insurance (COI) as proof of coverage.

A rider/endorsement increases or adds coverage for items or issues not typically covered or addressed in your original policy and changes the original policy's terms and usually adds additional cost to your insurance premium.

The certificate shows: [6]

Your policy number and coverage dates
Types and limits of coverage
The brand listed as additional insured
Your insurance company's contact information

Learn more about [how to get a certificate of insurance with