What is the difference between a named insured and additional insured?

In the context of insurance, a named insured is a person or entity specifically named in an insurance policy as the primary policyholder. The named insured is the individual or entity that purchases the insurance policy and pays the premiums. The named insured is typically the one who is protected by the policy and is responsible for paying any deductibles, should a claim arise.

On the other hand, an additional insured is someone other than the named insured who is also covered by the policy. The additional insured can be added to the policy by endorsement, which is a written agreement between the insurance company and the additional insured. The endorsement typically specifies the scope of coverage and the duration of the coverage.

An additional insured is typically added to an insurance policy to provide protection to a third party who may be liable for damages that arise out of the named insured's operations. For example, a contractor may add a property owner as an additional insured on its insurance policy to protect the property owner from liability for any damages or injuries that occur during the course of the construction project.

In summary, the main difference between a named insured and an additional insured is that the named insured is the primary policyholder who purchases the insurance policy and pays the premiums, while an additional insured is someone who is covered by the policy but is not the primary policyholder.