Why is our property management company named as an “additional insured” on the Association’s liability policy? Don’t they have their own coverage?

Since the manager is frequently acting at the direction of the Board, a typical management contract requires the Association to “indeminify” and hold the manger “harmless” for all circumstances which might arise from their management services, except for instances of gross negligence or willful misconduct. By requesting that the management company be named as “Insured” on the Association’s general liability and D&O coverage, the Association has, in effect, helped to “fund” the defense and indemnity responsibilities (to the degree that coverage is available) that they have contractually agreed to provide.