What is the Difference Between Named Insured and Additional Insured?

The main difference between a named insured and an additional insured lies in the extent of their coverage and their relationship to the policy. Here are the key distinctions:

Named Insured: This is the person or entity who owns the insurance policy and is responsible for paying the premiums. They can make changes to the policy, such as adding other people or businesses to their coverage. Named insureds are typically affiliates, partners, or co-owners of the primary insured.
Additional Insured: This is an individual or firm added to an insurance policy, usually after it has already begun. They are covered by the policy, but with limitations. Generally, incidents must be related to a named insured's work and responsibilities to be covered. Additional insureds are not responsible for paying premiums and typically do not receive notices of policy changes or cancellations. They may be listed in an addendum to the contract, called an additional insured endorsement or rider.

Another related term is Additional Named Insured. This refers to someone other than the named insured who shares full coverage under the policy. They are often added after the named insured's policy has already begun and may be listed in an addendum to the contract. An additional named insured is not responsible for paying premiums and cannot modify the policy, but the insurance provider will inform them of changes to it, such as cancellations. Some insurance companies give additional named insureds the same rights as a named insured.

On this page

What is the Difference Between Named Insured and Additional Insured?

Comparative Table: Named Insured vs Additional Insured

The main differences between a named insured and an additional insured are related to their rights, responsibilities, and coverage under an insurance policy. Here is a table summarizing these differences:

Aspect	Named Insured	Additional Insured	Additional Named Insured
Definition	The named insured is the party who owns the policy and has the primary responsibility for the policy.	An additional insured is an individual or firm added to an insurance policy, typically after it has already begun, with limitations on their coverage. An additional named insured is someone other than the named insured who shares full coverage under the policy.
Policy Rights	A named insured can make changes to the policy, such as adding other people or businesses to their policy.	An additional insured does not have the same rights as a named insured and does not receive notices of policy changes or cancellations. An additional named insured has the same rights as a named insured and is entitled to notice of policy changes and cancellations.
Coverage	A named insured has 100% of the benefits and coverage provided by the policy.	An additional insured's coverage is limited, generally related to a named insured's work and responsibilities.	An additional named insured shares full coverage under the policy with the named insured.
Premium Payments	The named insured is responsible for paying the policy premiums.	An additional insured is not obligated to pay premiums.	An additional named insured may or may not be responsible for paying premiums, depending on the specific policy.
Policy Notice	The named insured receives premium notices and notices of cancellation.	An additional insured typically does not receive premium notices or notices of cancellation.	An additional named insured receives premium notices and notices of cancellation.
Endorsement	Not applicable	An additional insured is added to the policy through an endorsement or rider.	An additional named insured is added to the policy through an endorsement or rider.

It is essential to understand these differences when determining the appropriate status for a party involved in an insurance policy.

Guilherme Mazui

Guilherme Mazui is graduated in journalism from the Federal University of Minas Gerais (UFMG) and a master's degree in Communication from the University of São Paulo (USP). In addition, he has experience in advertising writing and has worked as a content editor in several companies.