Changing Status of 'Who Is An Insured?'

Endorsements for adding named insureds, additional named insureds, and additional insureds are available for both personal lines and commercial lines policies. A few selected endorsements are highlighted below; this is not an all-inclusive list of available endorsements altering insured status.

Personal Lines Endorsements
Selected Endorsements Adding Status and Protection as a Named Insured or an Additional Named Insured:

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• Other Member of Your Household (HO 04 58): Homeowners endorsement providing personal property, additional living expense and liability protection to a named individual living in the named insured's home that is not a relative. This includes individuals such as domestic partners or significant others.
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• Assisted Living Care Coverage (HO 04 59): Homeowners endorsement extending limited property protection and Coverage "E" Liability protection to relatives listed in the schedule (named) in the endorsement while living in an assisted care facility.
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• Residence Held In Trust (HO 05 43): Homeowners endorsement extending named insured status to a Trust. Also extends protection to the spouse of the trustee and resident relatives of the trustee but only while residing in the residence premises listed in the policy.
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• Joint Ownership Coverage (PP 03 34): Personal Auto endorsement extending status as a "You" to an unrelated individual(s) or non-resident relatives when the named insured and the scheduled individual jointly own a vehicle eligible for personal auto coverage.
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• Named Individuals - Broadened PIP (PP 05 01): Personal Auto endorsement extending named insured status to the individual named in the endorsement for personal injury protection.
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The above homeowners and personal auto policy endorsements extend insured status equal to either that provided to a named insured or to an automatic insured.

Selected Endorsements Adding Additional Insured Status

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• Additional Insured (HO 04 41): Homeowners endorsement extending some property and liability coverage to the scheduled additional insured to provide property coverage for real property in which the named party has an interest. Also provides liability coverage for the named party's vicarious liability for actions of the insureds.
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• Additional Insured - Lessor (PP 03 19): Personal Auto endorsement extending vicarious liability and physical damage protection to the lessor of a vehicle leased by a "You."
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These endorsements only extend coverage for the scheduled additional insured's specific interest in property and for the scheduled individual's or entity's vicarious liability.

Commercial Lines Endorsements
Selected Endorsements Adding Status and Protection as a Named Insured or an Additional Named Insured:

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• Employee Hired Auto (CA 20 54): Commercial Auto endorsement extending insured status to an employee hiring or renting a vehicle in his/her own name in order to conduct business on behalf of the insured.
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• Individual Named Insured (CA 99 17): Commercial Auto endorsement used when the insured is an Individual or Partnership. Extends Insured status to resident spouses and "family members." A similar endorsement is available for the Commercial Umbrella (CU 24 17)
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• Employees as Insureds (CA 99 33): Commercial Auto endorsement extending insured status to employees using their personal vehicle on company business.
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• Social Service Agencies - Volunteers as Insureds (CA 99 34): A specialized commercial auto endorsement extended insured status to volunteers transporting clients or other individuals on behalf of a social service organization.
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• Employee as Lessor (CA 99 47): Commercial Auto endorsement extending status as an insured to any employee leasing his/her personal vehicle to the business.
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• Hired Auto and Non-Owned Auto Liability (BP 04 04): A BOP endorsement extending insured status to an employee using his/her personal vehicle to conduct company business.
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It is important to notice that the only commercial endorsements expanding the definition of an insured relate to automobile exposures. Clearly, then, the only way to garner any level of insured status for other than vicarious liability in the commercial general liability, BOP or umbrella policies is to be scheduled as a named insured (a "You") or qualify as an automatic insured. If neither is possible, the individual or entity simply will not be protected and cannot qualify for protection against the financial consequences for their actions individually or on behalf of the named insured.

"Additional Insured" status is available through a myriad of endorsements, each created to accomplish a specific contractual or relational goal. Remember, additional insured status provides the narrowest coverage, generally not protecting such additional insureds for any of their own actions, but only for their vicarious liability resulting from the actions of an insured or their interest in the property. Review of the available endorsements will develop an awareness of the options for the client.

Who Is An Insured, And What Is Their Status - Conclusion

Incorrectly providing insured status can result in uninsured losses for individuals or entities which assumed they were protected by the policy. This unfulfilled expectation will often lead to an errors and omissions situation for the agent/broker. Knowing the right questions to ask and what insurance and risk management solutions to offer will allow the prepared insurance professional to stand out from the competition and win a new account or keep a current account.

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