In what situation might a company add an individual as an additional insured?

An individual is often added as an additional insured when renting property for business use to extend liability coverage. In this scenario, the property owner or landlord typically requires that the tenant carry insurance that includes the landlord as an additional insured. This arrangement protects the landlord from potential claims resulting from the tenant's operations on the property. If a liability incident occurs, the landlord can rely on the tenant's insurance to cover claims made against them, thus ensuring that both parties are better protected in case of an accident or injury that takes place on the premises.

In contrast, the other options do not typically involve the addition of an individual as an additional insured. For example, making a single premium payment or entering into a licensing agreement usually does not necessitate changes to insurance coverage. Seeking a loan from a bank may involve different types of collateral or assurances but does not usually require additional insured status. Therefore, the context of renting property aligns with common practices in liability coverage, making it the most appropriate situation for adding an individual as an additional insured.