Named Insured vs Additional Insured

What’s the Difference?

What is the difference between being “named insured” and being added as “additional insured”?

Named Insured

This term refers to the person who is the direct owner of the insurance policy, who originally purchased the coverage and whose name is identified on the declarations page of the policy. The named insured is the only party that has the power to make changes to the policy, cancel the policy, or make any other modifications.

Additional Insured

Additional insured refers to persons who are not named insured but have been added to the policy by means of endorsement by the named insured. These endorsements are typically made in order to extend insured status and coverage to another person based on a business relationship or if the named insured is contractually obligated to provide another person with insured status under the policy. The additional insured does not have the power to make policy changes or cancel the policy.

What About Automatic Insured?

Automatic insured refers to people or parties that are insured under the policy but are not named insured. Automatic insured persons may include but are not limited to partners, joint ventures, the spouse of a named insured, and employees and volunteer workers of the named insured business, to name a few.

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