What is the difference between “Named Insured”, “First Named Insured” and “Additional Insured?”

Named Insureds are those listed by name in the relevant section of the policy’s declaration pages  (front pages of the policy with specific information). Although the named insured is commonly one person, partnership, corporation or other entity with insurable interests, multiple named insureds may be included.

First Named Insured is the first “named insured” listed on the policy declarations. This insured acts as the legal agent for all named insureds in initiating cancellation, requesting policy changes or accepting any return premiums. The first named insured is also responsible for payment of the premiums.

Additional Insured is an entity to which a policy’s coverage is extended. An additional insured must be added to the policy prior to a claim being paid. There must be a relationship between the additional insured and named insured. Being an additional insured on another’s policy does not eliminate the need for someone to have his/her own Commercial General Liability policy.


Category: Business Insurance

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