Insurance can be confusing enough at times, and adding terms like “named insured,” “other insured,” and “additional insured” to the mix doesn’t help. While these terms may sound similar, they each signify different levels of liability protection afforded with a policy, so it’s important you understand the meaning of each.
Who is the “named insured” on my policy?
The named insured on a policy includes any person, firm, organization, or any of its members specifically designated by name as an insured(s) in an insurance policy. Named insureds have responsibilities and benefits not afforded to other or additional insureds —they bought the policy, they pay for the policy, they can change or cancel the policy, and they receive all the protection it provides.
Learn More: What is Named Insured In Underwriting?
They are the person(s) or entity(s) named on the declarations page, and are often referred to as “you” in the policy. The named insured may be a sole proprietorship, partnership, corporation or another type of entity.
Who is the “other insured” on my policy?
An other insured is a person or entity who shares full coverage on the policy, but is not responsible for payment on the policy, nor can they make changes. These could include employees, members of an LLC or even family members.
Who is the “additional insured” on my policy?
An additional insured can be added to the policy “in addition to” the named insured(s) mentioned above because they are seeking insured status on the policy where they were not automatically included.
Additional insureds are often added to a policy because the named insured wants, or is being required via contract, to include them.
Some examples include general contractors being listed on the policies of sub-contractors, owners of real estate on the policies of the tenants, and retailers on the policies of manufacturers.
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Where can I learn more?
At Central, we prioritize working with independent insurance agents that value hospitality and customer service as much as we do. If you have questions about your policy or are looking to better understand the difference between complex insurance terms like these, get in touch with your agent today. They will be more than happy to walk you through how these differing types of insureds should be listed on your policy to ensure all parties are fully covered.