Definition Of Insured Apr 2026

: These are parties added to a policy—such as a landlord or a client—to extend limited coverage to them for specific situations.

The exact wording in your policy determines who receives benefits if a claim is filed. For instance, a vehicle insurance policy may cover the driver (the insured) and the car owner (the named insured) differently. Organizations like the Legal Information Institute emphasize that an insured's loss creates the insurer's legal obligation to pay proceeds. New York Insurance Coverage Law Update - Rivkin Radler definition of insured

: Depending on the entity type, this may include family members, employees, or business partners who are automatically granted coverage by specific reference in the policy. Common Distinctions : These are parties added to a policy—such