Legal Definitions - named insured

A named insured refers to the individual or entity specifically identified by name in an insurance policy as the primary holder of the coverage. This person or entity possesses the main rights and responsibilities under that policy, including the right to make claims, receive benefits, and make changes to the policy.

Here are some examples to illustrate this concept:

• Example 1: Personal Auto Insurance

  When Sarah purchases an auto insurance policy for her car, her name is explicitly listed on the policy documents. She is the one who pays the premiums, can file a claim if she gets into an accident, and has the authority to add or remove drivers from her policy. In this scenario, Sarah is the named insured.

• Example 2: Homeowner's Insurance for a Couple

  David and Maria jointly own a house and purchase a homeowner's insurance policy to protect their property. Both their names, David Smith and Maria Rodriguez, are listed on the policy declaration page. They both have the authority to make decisions regarding the policy, such as filing a claim for storm damage or updating their coverage. Here, David and Maria are the named insureds.

• Example 3: Business Liability Insurance

  "Bright Ideas Marketing LLC", a small marketing firm, obtains a general liability insurance policy to cover potential risks like client lawsuits or property damage. The policy explicitly lists "Bright Ideas Marketing LLC" as the policyholder. The company, through its authorized representatives, is responsible for paying premiums and would be the entity to file a claim if, for instance, a client slipped and fell in their office. In this case, "Bright Ideas Marketing LLC" is the named insured.