Insurance is one of the most important tools available for protecting yourself and your business from financial loss. It’s a way of transferring risk, so you don’t have to shoulder the entire burden yourself.
A key element of any insurance policy is the “name of insured.” This specifies exactly who is covered by the policy, and therefore, who is entitled to receive benefits if a covered loss occurs.
However, it’s not always as simple as it sounds. There are different kinds of “insureds,” and understanding the distinctions between them is crucial. You might have a “named insured,” an “additional named insured,” or simply an “additional insured,” and each designation carries different rights and responsibilities. This article clarifies the meaning of “name of insured” and breaks down the various types you might encounter.