What does "Named Insured" mean?
(Example: Carwash/Detail shop)
It is important that the named insured on your policy is correct. The insurance company's obligation is to protect the named insured. A legal concept called insurable interest means the named insured should be the same as is shown on your deed to property, your business operating name, the titleholder name as shown on your vehicles, etc. If the named insured is incorrect it can mean you will not receive the financial protection you believe you have purchased. You also need to include any predecessor company or companies as named insureds for protection from any kind of discontinued operations, or their inclusion in claims that might be presented by a third party claimant and/or first party damages involving them as insurable entities.
Scott Brothers is president & CEO of Joplin, Missouri-based The Insurancenter. Serving the carwash industry for over 25 years, The Insurancenter is the largest writer of carwash insurance nationwide.