Named Insured vs. Additional Insured

Presented by Mike Regan

In insurance parlance, a Named Insured is the person, or organization in whose name an insurance policy is written. Typically, it is the person or organization that has paid for the policy.

Additional Insureds are other organizations that have been automatically added by the terms & conditions of the policy or by specific endorsement of the policy. An example of an automatic Additional Insured would be a Named Insureds real estate manager. These automatic Additional Insureds can be found in the “Who Is An Insured” section of the policy. Anyone other than these would need to be specifically added as an Additional Insured.

Additional Insureds have coverage as a result of the actions of and business relationship with the Named Insured. Additional Insureds that are not automatically added have to be listed on a separate Additional Insured endorsement to the policy. The endorsement may include a premium charge.

The most typical situation we see for an Additional Insured status is when a Subcontractor needs to add a General Contractor to his policy or when a General Contractor has to add a job Owner to his policy. In addition, not all Additional Insured endorsements are the same. Carriers frequently have their own proprietary forms. Some restrict coverage by time or for premises/operations only and do not include completed operations. As such, it is important that you and your broker review these forms for accuracy and compliance.

At Cleary, we will evaluate your business exposures and work with you to develop a comprehensive plan to safeguard your business. Give us a call today at 617-723-0700.