Insurance can be confusing enough at times, and adding terms like “named insured,” “other insured,” and “additional insured” to the mix doesn’t help. Although these terms may sound similar, they denote different levels of liability protection that a policy provides, so it’s important that you understand the meaning of each.
Who is the “named insured” on my policy?
The named insured on a policy includes any person, company, organization or any of its members specifically named as one or more insureds of a policy. Named insureds have responsibilities and benefits not available to other or additional insureds – they bought the policy, they pay for the policy, they can change or cancel the policy, and they get all the protection it provides.
Read more: What is Insured in Underwriting?
They are the person or entities named on the declaration page and are often referred to as “you”; in the policy. The named insured may be a sole proprietorship, partnership, corporation or other type of entity.
Who is the “other insured” on my policy?
One other insured is a person or entity that shares full coverage on the policy, but is not responsible for payment on the policy nor can make changes. These can include employees, members of an LLC, or even family members.
Who is “additionally insured” on my insurance?
One further insured may be added to the policy “in addition to” the named insureds 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 required by contract, to include them.
Some examples include general contractors listed on subcontractors’ policies, property owners on renters’ policies, and dealers on manufacturers’ policies.
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Where can I learn more?
At Central, we prioritize working with independent insurance agents who value hospitality and customer service as much as we do. If you have questions about your insurance or want to better understand the difference between complex insurance terms like these, contact your agent today. They will be more than happy to go over how these different types of insured should be listed on your policy to ensure that all parties are fully covered.