What is Additional Named Insured?
An Additional Named Insured is an individual or business entity that is included in an insurance policy alongside the primary policyholder. This designation grants them the same rights, coverage, and obligations as the original insured, meaning they are fully covered for any claims that arise under the policy. In the context of business or personal insurance, this can apply to property, liability, or other types of coverage.
For example, in a commercial property insurance policy, a business partner might be added as an Additional Named Insured to ensure both parties are covered. This designation is often used in business relationships where multiple parties have a financial interest in the insured property or assets. In auto or homeowners insurance, a spouse or co-owner of a property may be named as an Additional Named Insured.
However, it’s essential to distinguish this from an “Additional Insured,” which typically has more limited coverage and does not share all the same rights and responsibilities as the primary policyholder.