Named Insured vs. Additional Insured

The "named insured" is the business or individual specifically identified on the policy's declarations page, the primary party the policy is written for. An "additional insured" is a separate party, often a landlord, client, or general contractor, added to the policy so they also receive liability protection tied to the named insured's operations, without being the policy's actual owner.

Who Can Be Covered as an Insured

• Sole proprietors and their businesses
• Partners in a partnership, for business-related liability
• Officers, directors, and employees acting within the scope of their duties
• Subsidiaries specifically listed on the policy

Coverage for these parties usually applies only while they're acting on behalf of the business, not for unrelated personal conduct.

Why This Distinction Matters

Contracts with clients or landlords frequently require a business to add them as an additional insured. Failing to do so, or assuming a verbal agreement is enough, can void that requirement and put a signed contract in breach, or leave the other party without protection they were counting on if a claim arises from the relationship.