Named insureds are those listed by name in the relevant block of the policy's declaration page. Although the named insured is commonly one person, partnership, corporation, or other entity with insurable interests, multiple named insureds may be included.
First named insured is the first "named insured" listed on the policy's declaration page (front page of the policy). This insured acts as the legal agent for all named insured in initiating cancellation, requesting policy changes, or accepting any return premiums. The first named insured may also be responsible for payment of the premiums.
Additional insureds are entities to which a policy's coverage is extended. An additional insured must be added to the policy prior to a claim being paid. There must be a tied to relationship between the additional insured and the named insured. Being an additional insured on another's policy does not eliminate the need for someone to have his/her own Commercial General Liability policy.
What is the difference between "named insured," "first named insured," and "additional insured"?
What is General Liability?
General Liability provides coverage if you are liable for damages to other individuals arising form your premises, general operations (ongoing and after completion), and products manufactured or sold.
An audit may require you to show proof that sub-contractors have their own insurance coverage. The sub-contractors' certificates of insurance will prevent you from being charged for their exposure.
How does an audit work?
At the end of the policy term, an insurance company will review the policy and either charge or credit the policyholder based upon an audit of estimated figures. Examples of estimated auditable items include sales and payroll. Audits can be performed onsite by an auditor or via mail or telephone. A premium is charged for audit estimations.
Can other people drive my business vehicle?
Other people may drive your vehicle with your permission. It is important that they be listed on your policy if they are regular drivers of the vehicle.
Does my policy cover physical damage to a vehicle that I rent?
This damage will be covered only if that type of coverage is purchased.
What does 80% co-insurance mean?
Insurance carriers require that an insured party insure at least 80% of the property's value in order to collect a partial loss in full. This is how the insurance company encourages all insureds to adequately insure their property in relation to other insureds.
What is the difference between Replacement Cost (RC) and Actual Cash Value (ACV)?
Replacement Cost is the current cost to replace property. Actual Cash Value is the replacement cost less depreciation.
Fire legal coverage provides coverage to you if you rent a business space and are held responsible for fire damages to that rented space. It does not apply to all business risks.
What is fire legal coverage?
What is business interruption/extra expense coverage?
Business interruption/extra expense coverage provides coverage for income loss and the expense of establishing a temporary site during repairs due to damages related to a fire or comprehensible loss.
What does products/competed operations mean?
Products/completed operations refers to the liability coverage for damages caused by your operation or products after the point at which you no longer have control of them.
Why do I need certificates of insurance from sub-contractors?