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Named Insured, Additional Insured, and Additional Named Insured: What’s The Difference?

23 Aug, 2017 | View Counts (28068) |Return|

Program Insurance Group, might be better suited for a franchisee’s unique needs.

Named Additional Insured

Named Additional Insureds are also considered to be owners of the policy. They have full access to coverage with few or no restrictions, but share policy limits with the Named Insured. They are entitled to notice of policy change and cancellations and can be held responsible if main policyholder is unable to meet the financial obligations of policy. Named Insureds are often affiliates, partners or co-owners of the Named Insured’s business.

Additional Insured

Additional Insureds are added through endorsement, which extends insured status and confers coverage based upon a business relationship with the Named Insured. It is important to pay attention to the scope of coverage the endorsement allows for to ensure there is compliance with the contractual requirements in place. Most Franchise Agreements call for the “broadest” form, extending coverage beyond the minimal vicarious liability. Additional Insureds are not able to make changes to the policy. Typically a landlord or franchisor will require Additional Insured status.

Insurance terms can be confusing, but understanding them is important to obtaining proper coverage. Program Insurance Group is designed to fit your individual needs. We can help you gain a better understanding of what coverage you need and why. Our extensive franchise business insurance experience enables us to find the best policy to keep you in compliance with your Franchise Agreement and avoid any uncovered loss and expensive litigation.

Contact us today for a free quote to protect your investment.

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