Protecting your name, securing your identity
Understanding The nuances of business insurance can be quite complex, but one term that should never be overlooked is the ‘named insured.’
As a Canadian business owner, knowing who is designated as the ‘named insured’ on your business insurance policy is critical.
What is the ‘Named Insured?’
The ‘named insured’ refers to the individual or entity explicitly designated by name in an insurance policy’s declarations. They are the main party insured under the policy and hold all rights, responsibilities, and benefits of the policy. If your business suffers a loss, the named insured is the party that directly deals with the insurance company.
Why it’s so important?
The Importance of correctly designating the named insured on your business insurance policy is crucial for adequate protection. If your business is the named insured, the insurance policy covers the company’s legal liabilities. Incorrectly Naming the insured could lead to insufficient coverage or claims denials. For Instance, suppose you mistakenly list an individual when your business should have been listed or vice versa. In that case, you may face difficulties with claim settlements or even risk voiding your policy.
THE NAMED INSURED : TOP 5 RISK MANAGEMENT TIPS
1. Clarify the Named Insured: Make sure the named insured on the policy correctly reflects who needs the coverage. Whether it is an individual or a business entity, the named insured should be accurately and fully stated. For businesses with complex structures, consult your insurance broker for guidance. 2. Update Regularly: Business changes, like a change in ownership or business structure, should be communicated to your insurer as these may impact your coverage. Neglecting to update these changes can lead to complications in the event of a claim. 3. Consider Additional Insureds: In some circumstances, it might be beneficial to include other parties, like landlords or financial institutions, as additional insureds on your policy. This can provide an extra layer of protection as it extends coverage to other entities involved in your business operations. Your broker will best advise you on this process. 4. Review Policy Annually: Regularly review your policy to ensure that the named insured still aligns with your business needs. It's a common best practice to review and update your insurance policy at least annually. 5. Professional Guidance: Utilize the expertise of your insurance broker to help navigate the complexities of business insurance. This can save you from costly mistakes and ensure you're adequately covered.
TALK TO YOUR A-KAN INSURANCE BROKER ABOUT YOUR INSURANCE NEEDS TODAY