Who is an insured on a Commercial General Liability policy?

photo prof-1425421669292-0c3da3b8f529Who is an insured on a Commercial General Liability policy?  This can be a tricky question; however, here is a brief breakdown.  As always refer to your firm’s specific policy so you have an understanding of an insured.

First Named Insured – As stated this is the First Named Insured on the actual policy.  It is the only entity that can cancel the policy, change the policy or pay the premium.  Also, any correspondence regarding cancellation policy changes or premium (including audits) will be sent to the first named insured.  The first named insured can be the partnership, joint venture, corporation, limited liability company, trust or a sole proprietor.

Insured – An insured that is automatically qualified by policy provisions.  This is different from the first named insured in that these insured’s are not able to make cancel, change or pay the policy.  The insured’s include employees, partners, members, executive officers, directors, stockholders, managers, trustees and volunteers.

Additional insured added by endorsements – This is more commonly known as ‘additional insured’.  The additional insured is either listed specifically by endorsements or is under the blanket additional insured endorsements.  They are typically clients of the first named insured and are often required by contract to be an additional insured on the Commercial General Liability policy.

As always, be sure you review your policy so your firm fully understands the different provisions.  A first named insured, an insured or additional insured by endorsement can be difficult to recognize.  If your firm is not sure how a specific entity or individual comes into play in the Commercial General Liability policy please call or email your PUI Agent for more information and to discuss your specific situation.

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