The most common way owners address construction liability is by requiring additional-insured status on the general contractor’s general liability policy, backed by indemnification and hold-harmless language in the contract. It’s the easiest route — and the most fragile.
Why additional-insured status can fall short
Additional-insured protection depends entirely on the contractor’s policy remaining in force with adequate limits, favorable terms, and no disqualifying exclusions. If those limits erode, the policy lapses, or coverage simply cannot respond, the owner is exposed. Anti-indemnity statutes in many states further limit how much risk can actually be transferred by contract.
Owner’s Interest doesn’t replace good contractual risk transfer — it backs it up. As the owner’s own policy, it can drop down when the contractor’s coverage falls short, and it adds completed-operations protection that additional-insured status often does not reliably provide. The two work best together.