| COMMITTEES’ CORNER |
Types of Insureds
INSURANCE COVERAGE
“Named Insured,” “First Named Insured,” “Additional
Insured,” and “Additional Named Insured.” Confused yet?
by Kent Anthony
A
ll insureds listed or endorsed on the CGL
(commercial general liability) policy will have
coverage under the policy. While all “named
Insureds” have the same overall coverage that is afforded
within the policy, the same can’t be said for the “additional
insureds” that are listed. Additional insureds do share in
the limits of liability with all other insureds but additional
insureds will usually be limited in scope as to the coverage
benefits that are afforded.
The business entity is usually listed as the first “named Insured”
under a CGL policy. This may be a sole proprietor, partnership,
corporation, or LLC. This entity may be the only insured
shown on the declarations but sometimes other related entities,
owners, persons, or others with an insurable interest want and
need to have coverage as well. If these other entities are listed
as “Additional Named Insureds” then they are entitled to the
same coverage benefits as the first named insured. So, all are
considered to be named insureds under the policy.
The first named insured listed on the policy acts as the legal
agent for all additional named insured’s. The first named
insured has certain rights and responsibilities the other named
insureds do not have which include:
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It is only the first named insured the company will accept a
cancellation request from
The first named insured is who the company will notify
should it decide to cancel the policy
The first named insured will receive any premium refund
due when a policy is cancelled
The first named insured is the only person (entity) from
whom the company will accept requests for policy changes
The first named insured is responsible for paying any
premium due
It is onl