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Common Insurance Terms – Additional Insureds

January 4, 2012

First of all, we want to wish you a Happy 2012!  As we start the year we thought it good to begin a series of blogs that address some common insurance terms and concepts. For a comprehensive list of insurance terms we recommend you visit the International Risk Management Institute (IRMI).

We are frequently asked, “Are other people insured under my policy?”   The answer is not always obvious and it depends on the relationship to the policyholder.  Insured status is granted in several ways to either the Named Insured, Additional Named Insured or Additional Insured.  So who are all these insureds and how are they related?

Named Insured – The person or organization specifically named on the insurance policy declaration page.  For organizations, this usually includes employees.

Additional Named Insured – A person or organization that is added to the policy. The additional named insured has many of the same rights and responsibilities as the named insured.  Coverage usually follows the same policy form limits, terms and conditions.

Additional Insured – A person or organization that is included as an insured party to the policy. Additional insureds are generally organizations that have some monetary interest in property or equipment.  This might include a landlord, convention center, or leaseholder for copiers and other office equipment. Coverage only applies to liability for operations performed by or for the named insured.

It is important to note that additional insured and additional named insured status is not automatic.  Coverage is generally added by endorsement and there may be an additional premium. A good risk management protocol is to review the “Who Is Insured” section of each policy on a regular basis.

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