What is a Policy Owner?
A policy owner is the person or organization who owns an insurance policy and holds the rights and responsibilities associated with it. In the context of property or auto insurance, the policy owner is the one who purchases the policy, pays the premiums, and has the authority to make changes to the coverage, add or remove beneficiaries, or cancel the policy altogether.
The policy owner has the responsibility of ensuring that all premium payments are made on time to keep the policy active. If the policy owner defaults on payment, the coverage can lapse, leaving the insured property or vehicle without protection. It’s also important to note that the policy owner may not always be the insured party. For instance, in a business setting, a company might own a policy that covers multiple employees or assets.
The policy owner also has the right to file claims in the event of a covered incident and works with the insurance company to manage the claim process. Understanding the policy owner’s role is critical when reviewing or purchasing an insurance policy, as this role comes with control over coverage decisions that directly impact the insured property or individuals.