Insureds

An insured is the person or organization covered by an insurance policy. The policy creates a contractual obligation for the insurer to provide indemnity, defense, or benefits for losses that fall within the policy’s scope, up to stated limits and subject to exclusions and conditions.

Key terms related to insureds include the named insured, additional insured, and insured persons or entities covered under a policy. The named insured is the party identified on the declarations page who has primary protection under the contract. Additional insured status can be added by endorsement, extending coverage to another party for specified exposure, often in liability policies. In some policies, there may be multiple insureds depending on the risk and contract terms.

In life, health, or disability insurance, the insured is the person whose life or health is the subject of the coverage. The policyowner is the person or entity that owns the contract and usually pays premiums, which may be the same as or different from the insured. The beneficiary is the person or organization designated to receive proceeds, typically in life insurance, upon the insured’s death or a specified event.

Claims begin when the insured (or the policyholder) reports a loss. The insurer investigates to determine coverage, applies policy limits and exclusions, and pays or defends as appropriate. Coverage is limited by the policy language, including exclusions, conditions, and endorsements.

Overall, the insured is fundamental to the risk transfer arrangement, with rights and responsibilities defined by the policy terms.