Named insured

The named insured is who the policy is for. It’s the business, or the person, whose name appears on the declarations pageDeclarations pageThe declarations page is the summary at the front of an insurance policy listing who’s insured, what’s covered, the limits, deductibles, premium and policy dates.Read the definition, and in most business policies the words “you” and “your” refer to it.

How it works

The named insured has the fullest coverage under the policy. Other people can be insureds too. In a standard general liability policy, for example, your employees are insureds for acts within their jobs, and an LLC’s members are insureds for their conduct of its business. But their coverage flows from the named insured’s policy.

When more than one name is listed, the first one is the first named insured. In many policies, that’s the one responsible for paying the premiumPremiumA premium is the amount you pay an insurance company for a policy, usually set for a 12-month policy period and paid upfront or in installments.Read the definition, receiving notices of cancellation or changes, and getting any premium refund.

Getting the name right

Use your business’s exact legal name, as registered with your state, and add a “doing business as” (DBA) name if you trade under one. If you run more than one entity, such as an LLC that owns the building and another that runs the shop, each may need to be listed. A mismatch can cause problems when a landlord checks your certificate of insuranceCertificate of insuranceA certificate of insurance (COI) is a one-page summary that proves your business has insurance, listing your policies, limits, insurers and policy dates.Read the definition, or worse, when you make a claim.

Named insured vs. other parties

An additional insuredAdditional insuredAn additional insured is a person or company, such as a landlord or client, added to your liability policy so it can protect them from claims tied to your work.Read the definition is someone else, often a landlord or general contractor, added to your policy by endorsementEndorsementAn endorsement is a written change to an insurance policy that adds, removes or modifies coverage, such as adding an additional insured or a new location.Read the definition for claims tied to your work or premises. A certificate holderCertificate holderA certificate holder is the person or company that receives a certificate of insurance as proof of your coverage, without gaining any coverage under your policy.Read the definition only receives proof of coverage and has no rights under the policy. The named insured is the one who bought it.