Insured

Insured is a generic term that refers to any person or entity legally entitled to receive the benefits of an insurance policy, typically claim payments. Insurers make payments to insureds after they experience a covered loss, damage, or an injury that qualifies for payment under the policy’s terms.

This could include damage to property owned by the named insured (the person who purchased the policy) or a third party.

An insured party is any person or entity that is legally qualified to receive insurance payments after a loss occurs. A named insured is a more specific term referring to individuals or companies listed on a policy’s declaration page.

General liability insurance and business owner’s policies have multiple insureds. Listed in the policy section “Who is an insured?”, they include company employees, executives, volunteers, and others. However, insureds only receive insurance protection while fulfilling their duties on behalf of the named insured.

For example, an employee who damages someone else’s property while fulfilling his job duties is an insured under his employer’s general liability insurance. That means his company’s policy will pay for the damage he caused.

Similarly, commercial auto insurance policies extend coverage to insureds in addition to the named insured. For example, most auto insurance policies provide liability coverage to anyone driving the named insured’s vehicle, including someone hired to do so.

Clients or customers who get injured are not considered insureds. Although they may receive insurance benefits, they are referred to as claimants, since they don’t work for the named insured.

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