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Glossary

Named insured

The named insured is the person or company listed on a policy as the primary policyholder, with full rights to file claims, add endorsements, and cancel coverage.

By Andrew Bate, Co-founderReviewed by Stuart BateUpdated

Why this matters for property managers

Entity naming trips up managers more than any other administrative detail: the policy names one LLC, the management agreement another, and the permit application a third. Certificates get rejected and claims get delayed until the names line up.

Worked example

Sunset Stays LLC signs the management agreements, but the policy names Sunset Holdings Inc. A city permit office rejects the certificate of insurance because the applicant is not the named insured. A named insured endorsement adding the operating LLC fixes it in a day; re-papering the agreements would take months.

Which entity should be the named insured?

The named insured should be the entity that signs the management agreements and holds the permits, usually the operating LLC, with any trade names listed as DBAs. Managers who run a holding company, an operating company and a separate cleaning entity need each one scheduled, or claims against the unscheduled entity are declined. Owners are added as additional insureds, not named insureds, so they are covered without gaining the right to cancel the policy. Certificates get rejected by permit offices and HOAs when the name on the certificate does not match the applicant, so keep the entity names identical across policy, agreement and permit, and add a named insured endorsement whenever a new entity starts operating.

Related terms

Additional insured
An additional insured is a person or company added to a policy who receives some of the policyholder's coverage benefits. Property managers commonly add homeowners, HOAs, and municipalities as additional insureds on their liability policy.
Declarations page
The declarations page is the first page of an insurance policy. It lists the named insured, policy number, coverage limits, deductibles, premium, and policy period — the summary that answers 'what does this policy cover, and for whom?'
Certificate of insurance (COI)
A certificate of insurance is a one-page document that proves an insurance policy is in force, listing the named insured, coverage types, limits, effective dates, carrier, and any additional insureds. Homeowners, HOAs, lenders, and city permit offices routinely require one from property managers.

Browse every term in the insurance glossary for property managers.

Named insured: common questions

Should each LLC be a named insured?

Every entity that could be sued should be a named insured or an additional insured. Managers with multiple entities usually list them all.

What is the difference between named insured and additional insured?

The named insured owns the policy. An additional insured receives specified protections under it but cannot change it.

Related guides

General liability for property managers
Read the full Velaris guide.
Insurance for vacation rental property managers
Read the full Velaris guide.
Certificates of insurance
Read the full Velaris guide.

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