Insurance Mistakes – Improper Named Insured

Your insurance requires that names be listed on the declarations page of the policy.  Those entities or people listed are insured by the policy. Some policies extend protection to subsidiaries and owners. Notice I said, “some.”

Review the named insureds on your policies. Be sure all entities are listed or that the policy includes language adding subsidiary entities to the policy.

Pay special attention to the first name. The “First Named Insured” often has special rights and responsibilities such as the ability to make policy changes, the authority to cancel the policy, the responsibility of paying premiums. Having the wrong entity listed first could cause problems. The order entities are listed after the first insured is unimportant.