Who is an Insured?

December 10, 2019

 

One of the common questions we receive in regards to general liability insurance for restoration contractors is in regards to who is actually covered on the policy.

 

Under the standard general liability policy there are two main types of insureds: named insureds and additional insureds.

 

Named insureds are individuals that are named in the declarations pages of the policy or defined as an insured within the policy itself.

 

Additional insureds are companies or individuals that are not named in the declarations page of the policy, but are afforded coverage under the policy by way of endorsement.

Named Insured:

 

In this post we will talk about the primary named insureds with respect to the type of business or organization you have.  In the next post we will talk about the different types of individual insureds included on your policy.

 

The standard general liability policy defines an insured as the following:

  1. An individual, you and your spouse, but only with respect to the conduct of a business of which you are the sole owner.

  2. A partnership or joint venture, you are an insured.  Your members, your partners, and their spouses are also insureds, but only with respect to the conduct of your business.

  3. A limited liability company, you are an insured.  Your members are also insureds, but only with respect to the conduct of your business.  Your managers are insureds, but only with respect to their duties as your managers.

  4.  An organization other than a partnership, joint venture, or limited liability company, you are an insured.  Your “executive officers: and directors are insureds, but only with respect to their duties as your officers or directors.  Your stockholders are also insureds, but only with respect to their liability as stockholders.

  5. A trust, you are an insured.  Your trustees are also insureds, but only with respect to their duties as trustees.

 

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