What is an insured?
An insured is the individual or business covered under an insurance policy. If you’re the insured, you’re eligible to receive financial benefits after filing a claim with an insurance company.
Is an insured the same thing as a policyholder?
No. An insured is someone the insurance policy protects.
The policyholder is the individual or business entity that bought and owns the policy and has the right to modify it.
A policyholder will often be an insured, but an insured is not necessarily a policyholder.
Can a business have more than one insured?
Definitely. In fact, businesses almost always have more than one. Common insureds for many types of small business insurance include:
- The business owner
- Company executives
- Employees
- Visitors to the business’ premises
- Volunteers
In most cases, insureds must be engaged in company business at the time of the loss to receive financial benefits under the policy.
What is the difference between an insured and an insurer?
An insured is the person or entity that an insurance policy protects.
An insurer is an insurance company or other business organization that evaluates business risks and issues insurance coverage.
Are insureds, named insureds, and additional insureds the same?
No. An insured is someone protected under an insurance contract.
A named insured is just another term for the policyholder — the person or entity who owns and can modify the policy.
For example, if you buy commercial auto insurance for your business, you’re the named insured/policyholder because you bought the policy. You and your employees are all insureds because you’re all eligible to receive benefits under the coverage.
An additional insured is someone the policyholder adds later to receive benefits under the coverage.
How NEXT can help insure your small business
NEXT’s licensed insurance agents can help you assess your risks and cover them with the right small business insurance.
We make small business insurance easy and fast. Get a quote and buy online in about 10 minutes. Download free proof of insurance 24/7 to help get you back to business.
Let’s find the coverage you need for your business
Business insurance is divided into different policies. We offer seven types so it's easy to design the coverage that fits your business.
General Liability
Protect yourself from accidents that cause physical injury or damaged property.
Professional Liability/E&O
Shield yourself from lawsuits that claim your work errors caused financial losses.
Workers’ Compensation
Cover medical bills and lost wages if your employees have an accident at work.
Commercial Auto
Stay on the road with coverage for dents, tows and damage to someone else’s vehicle.
Tools & Equipment
Upgrade your general liability coverage to protect any gear that’s stolen, damaged or lost.
Commercial Property
Keep your building, inventory and equipment protected from fire or water damage.
Business Owner’s Policy
Combine general liability and commercial property into one policy to protect your business.
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* To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.