Insured
What Is an Insured?
The “insured” is the individual named as the policyholder on an insurance policy.
When you buy insurance, you become the insured. This means the insurance company promises to help cover certain losses or risks that affect you or your business.
What Does “Insured” Mean?
An insured is the person or business protected by an insurance policy — the “who.” As the insured, you can file a claim and receive a payout as outlined by your coverage.
Who Can Be an Insured on a Policy?
An insured can be:
- An individual
- A business or LLC
- An organization or partnership
Depending on how your policy is written, it might also include business partners or employees acting within their work duties.
What Are Some Examples of Insured Parties?
Here are some examples of who can be considered an insured:
- A freelance photographer with a general liability policy
- A food truck owner insured on a mobile food vendor policy
- A salon owner with a beauty insurance policy
- A personal trainer insured under a fitness instructor policy
- A vendor holding liability coverage for an event
- A cleaning company insured for property damage or client injuries
- A consultant’s LLC protected under a commercial general liability policy
Insured vs Additional Insured: What’s the Difference?
The insured is the main person or business who owns the policy, while an additional insured is someone added to the policy because of their business relationship.
| Insured | Additional Insured | |
|---|---|---|
|
Definition |
The main person or business covered |
A third party added for shared protection |
|
Who it covers |
Policyholder and their business operations |
Clients, venues, or partners working with the insured |
|
Coverage scope |
Full coverage under all policy terms |
Limited to liability arising from the insured’s work |
|
Policy rights |
Can make changes, file claims, and receive payments |
Typically cannot change the policy or file claims |
|
Common use |
Protecting your business |
Meeting contract or venue requirements |
|
Duration |
For the entire policy term |
Often temporary or tied to a specific contract or event |
|
Example |
A cleaning business owner |
A property manager hiring that cleaning business |
Definition
Insured: The main person or business covered
Additional Insured: A third party added for shared protection
Who it covers
Insured: Policyholder and their business operations
Additional Insured: Clients, venues, or partners working with the insured
Coverage scope
Insured: Full coverage under all policy terms
Additional Insured: Limited to liability arising from the insured’s work
Policy rights
Insured: Can make changes, file claims, and receive payments
Additional Insured: Typically cannot change the policy or file claims
Common use
Insured: Protecting your business
Additional Insured: Meeting contract or venue requirements
Duration
Insured: For the entire policy term
Additional Insured: Often temporary or tied to a specific contract or event
Example
Insured: A cleaning business owner
Additional Insured: A property manager hiring that cleaning business
What Is a Named Insured?
A named insured is the specific person or business listed on the policy’s declarations page. They have full control and can make changes, file claims, and receive payouts.
Named Insured vs Insured:
Every named insured is an insured, but not every insured is a named insured. The named insured has full policy rights, while others (like employees or partners) have limited protection under specific terms.
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