Named Insured
What Is a Named Insured?
The named insured, also known as the primary insured, is the person or organization that owns the insurance policy. The named insured is also referred to as the policyholder.
Why Does the Named Insured Matter for My Business?
The named insured on your policy is important to your business for several reasons:
- It determines who’s actually protected: The named insured is the main person or business the policy is written for, so that’s who the coverage is designed to protect.
- It controls who can make changes to your policy: The named insured is usually the only one who can update details, add coverage, cancel the policy, or file claims on behalf of the business.
- It affects how claims get paid: If a claim is filed, the insurance company looks first at the named insured to confirm the right person or business is listed. They’re also the only ones entitled to a first-party claim payout (e.g., the named insured receives a payout for an equipment claim to replace their broken gear).
- The legal name must match reality: Using the correct legal name (LLC, corporation, or your full legal name if you’re a sole proprietor) helps avoid confusion or delays if there’s ever a claim.
If your business is the one doing the work, you want your business name to be the one the insurance company uses. If the wrong name is on the policy, it’s like having your paycheck made out to the wrong person — your money is there, but you’re not able to access it.
Key Takeaway: “Named insured” is just a fancy way of saying whose name is on the policy as the main person or business it protects.
Should My Policy List My Personal Name, My LLC, or Both?
What to list as the named insured on your policy often depends on how your business is set up.
If you’ve formed an LLC (limited liability corporation) or some other type of corporation, it’s best practice to list that legal entity as the named insured. That’s who owns the business and faces the risk.
In some cases, especially for very small or new businesses, your legal personal name may also be included, especially if you’re a sole proprietor.
Because every situation is a little different, it’s a good idea to ensure the name on your policy matches how your business is legally registered. When in doubt, talk with your agent or a legal professional.
Common Examples of Named Insureds on Small Business Policies
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| Business Type | Description | How the Named Insured Appears |
|---|---|---|
|
Solo massage therapist |
Jordan Lee is a self-employed massage therapist operating under their own legal name |
The policy lists “Jordan Lee” as the named insured |
|
LLC with employees |
Sparkle Clean Co., LLC has three employees |
The policy lists “Sparkle Clean Co., LLC” as the named insured, and the coverage is written for the business entity, not each individual employee |
|
Business with a DBA (doing business as) |
The legal entity is “Bright Events, LLC” but it advertises as “Bright Events Planning” |
The policy lists “Bright Events, LLC dba Bright Events Planning” as the named insured, so both names clearly tie back to the same business |
Named Insured vs. Additional Insured: What’s the Difference?
The named insured is the primary policyholder: the person or business that buys the policy, pays the premium, and has the broadest rights and protections. An additional insured is another person or organization (like a venue, landlord, or client) that’s added to the policy for limited protection related to your work with them.
The named insured remains the primary insured, while the additional insured is usually covered only for claims connected to your operations or services.
Quick Comparison: Named Insured vs. Additional Insured
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| Named Insured | Additional Insured | |
|---|---|---|
|
Who It Usually Is |
The main business or owner who buys the policy |
A third party, like a venue, landlord, or client |
|
Level of Protection |
Broadest protection under the policy |
More targeted protection, connected to a relationship, project, or event |
|
Level of Control |
Can request changes, add coverage, or cancel |
Cannot change or cancel the policy |
|
Main Reason They’re Listed |
They own the business and carry the primary risk |
They want protection for their connection to your business |
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