An insured is the person or business named on an insurance policy. If you’re the insured, your policy may help cover eligible costs when you file a claim, as long as the situation falls within the policy’s coverage terms and limits.
The insured is the covered individual or business named on the policy. In simple terms, it’s who the insurance is for.
A policy can list more than one insured, such as a business and its owners or employees. Some policies also name additional insureds — like a client or landlord — for specific, limited situations.
Who’s considered insured, and what the policy may help cover, depends on how the policy is set up and the type of coverage you have.
Yes. In fact, businesses almost always have more than one. Common insureds for many types of small business insurance include:
In most cases, insureds must be engaged in company business at the time of the loss to receive financial benefits under the policy.
An insured is the person or business the insurance policy is meant to help protect. If a covered claim happens, this is the party the coverage may apply to.
The policyholder is the individual or business that bought the policy and owns it. The policyholder is responsible for managing the policy, such as making payments or requesting changes.
In many cases, the policyholder and the insured are the same. But that’s not always true. Some policies are purchased by one party while covering others, which is why it’s possible to be insured without being the policyholder.
Simply, the policyholder owns and manages the policy, while the insured is who the coverage applies to.
Being insured generally means you have an active insurance policy in place. If something goes wrong and you file a claim, your coverage may help cover certain costs, as long as the situation falls within the policy’s terms.
However, just because you’re insured doesn’t mean everything is automatically covered. It depends on what’s included in your policy, along with its limits, exclusions and other potential conditions. Some losses may be covered, while others may not.
But being insured helps you manage financial risk. It’s a way to prepare for the unexpected, without having to handle every potential loss on your own.
No. These terms are related, but they don’t mean the same thing.
For example, if you purchase a general liability insurance policy for your contracting business, you (the general contractor) are the named insured because you own and manage the policy. You and your employees may be insureds when performing covered work. In some cases, you might add a client as an additional insured to provide limited coverage related to a specific project.
In general, the named insured owns the policy, insureds are covered under it and additional insureds receive limited protection in specific situations.
Read more: Named insured vs. additional insured: What’s the difference?
ERGO NEXT makes it fast, easy and affordable to protect your small business — and you can do it all online.
We’ll ask a few questions about your business and give you a quote. You can select your coverage options and buy your policy in about 10 minutes. Your certificate of insurance will be available immediately, and you can access your policy 24/7 via web or mobile app.
If you have questions, our licensed, U.S.-based insurance professionals are available to help.
