Named Insured

What is a Named Insured?

A named insured is any individual whose name appears on the insurance policy itself, as opposed to those who may be covered under the policy but are not explicitly named.

According to the Insurance Information Institute (III), a named insured is “the person or organization listed in the policy declarations.” As such, the named party is simply the person whose name the policy is under. However, designation is crucial as it determines who is covered under the policy and who has the authority to make changes to the coverage, such as adding or removing insured vehicles or properties.

As the primary policyholder, the named insured is entitled to coverage under the terms and conditions outlined in the insurance policy, and has the authority to make decisions regarding the insurance policy, such as paying premiums, filing claims, and making changes to coverage. However, with this comes the liability and obligation for the named insured to be responsible for complying with policy requirements, such as providing accurate information and disclosing relevant details about insured risks. Understanding the role of a named insured is essential for individuals and businesses when purchasing insurance coverage, as it delineates their rights and obligations under the policy. It ensures clarity regarding coverage terms, policy management, and claims processes, promoting effective risk management and financial protection against unforeseen events.