When it comes to insurance, many different terms and phrases can be confusing for those not in the industry. Two terms that are often used interchangeably but have very different meanings are “named insured” and “additional insured.” It is essential to understand the difference between the two so that you can be sure you are getting the coverage you need.
What is a Named Insured?
A named insured is the person or entity listed on an insurance policy as the party covered by the policy. In most cases, this will be the individual or business that purchased the policy. The named insured is typically the only party who can make changes to the policy or file claims under the policy.
What is an Additional Insured?
An additional insured is a person or entity not listed as a named insured on an insurance policy but still has some coverage under the policy. For an individual or business to be considered an additional insured, they must have an insurable interest in the property or business of the named insured. For example, a landlord would typically require their tenants to add them as an additional insured on their insurance policy.
Freedom Coverage – Commercial Insurance Long Island, New York
As you can see, there is a big difference between “named insured” and “additional insured.” It is essential to understand which one you are so that you can be sure you are getting the coverage you need. If you’re looking for the best business insurance policy, Freedom Coverage can help. We have years of experience in the industry and know how to find the right coverage for your needs. Contact us today for a free consultation, and let us help you protect your business.
Author:

Josh Mitchell
CEO Freedom Coverage Insurance