A designated insured endorsement is an optional endorsement available for commercial auto policies that allows for listing entities who ask to be named insureds for vicarious liability under the policy.

In an insurance policy, an additional insured refers to anyone other than the policyholder who is covered by an insurance policy. Coverage might be limited to a single event or it could last for the policy's lifetime.

Symbol 71 defines a covered auto as only those auto you don't own, lease, hire, rent or borrow that may be used in connection with your business.

What Is an Additional Insured Endorsement? An endorsement is an addendum to an insurance policy that broadens or restricts coverage provided by the policy. One such addendum is an additional insured endorsement—extending coverage to a party specified by the policyholder in the event of a claim or negligent acts.

Whereas the Named Insured is entitled to full coverage under its policy, Additional Insureds are only covered by the Named Insured's policy with regards to liability arising as a result of the Named Insured's negligence.

California state law requires all commercial auto policies to have a minimum liability limit of $15,000 per person, $30,000 per accident for bodily injury and $5,000 for property damage (i.e., 15/30/5). Some policies are required to carry higher limits based on the types of vehicles they insure.

The additional insured benefits from coverage and rights under the named insured's policy in the event of a claim. The purpose of additional insured endorsements is to keep the burden of risk closest to those parties most likely to create losses, which typically is third parties contracted to perform the work.