When you require your subcontractors to list you as Additional Insured on their General Liability policies, you become entitled to insurance coverage benefits under their policies. Additional Insured status is most often used in connection with an indemnification agreement, also known as a hold-harmless clause. Hold harmless clauses are common elements of a properly executed contract between you and your subcontractors. Under a hold-harmless, your subcontractors agree not to hold you responsible for their negligent acts which may have happened while they are working for you. For example, if your painter over-sprays several cars parked near the three-story townhouse your are building, the painter’s policy will respond to the claims made by the owners of the cars. If you are brought into a lawsuit filed by the car owners, the painter’s insurance company will defend you.