As of July 1, 2024, the Bahamas Customs & Excise Department has imposed substantial and egregious fees on pilots flying General Aviation aircraft on recreational flights. Pilots should be mindful of these new and additional fees before considering flying to the Bahamas. Read More
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Named Insured vs. Additional Insured: What is the Difference?

When it comes to your aviation insurance policy, you have probably heard the terms “Named Insured” and “Additional Insured.” Although these terms can mistakenly be used interchangeably, it is important to understand how to differentiate them when it comes to your aviation insurance coverage.

 So, who is actually a “Named Insured?” Essentially, a “Named Insured” is the entity that owns the insurance policy. A “Named Insured” is based on which parties have insurable interest in the risk presented. These can include one or multiple entities, which will be listed on the Declarations page of the insurance policy.

 For example, the “Named Insured” can include one or more of the following:

  • The Owner of the Aircraft or Aviation Operation (Individuals, Limited Liability Companies, Corporations, Government Entities, etc.)
  • Stockholders
  • Subsidiaries
  • Affiliated Companies
  • Parties that have financial interest

The entity and/or entities that are listed as a “Named Insured” will have the broadest form of protection in the insurance policy and will also have the responsibilities of a “Named Insured,” which includes completing all applications, choosing coverage types, paying premiums and deductibles, reporting claims and advising of any changes that occur within the policy period.

 An “Additional Insured” is an entity that may be added to your insurance policy via endorsement. Commonly, there is a contractual agreement in place that requires them to be listed as an “Additional Insured” under your policy.

 Examples of entities that may ask for this coverage under your insurance policy include:

  • The owner of the hangar where you store your aircraft
  • The airport owner that owns the airport where your aircraft is hangared
  • A flight school that provides pilot services for you or your pilots
  • A Lessee of your aircraft

An “Additional Insured” does not share the responsibilities of the “Named Insured” mentioned above, however, they share some of the liability coverages under your policy, which is why it is important to limit the additional insured entities listed on your policy. Understand that you are sharing your liability limit with additional insureds noted on your policy.

 In the event of a loss, it is crucial to understand and be able to differentiate a “Named Insured” vs. an “Additional Insured,” so that you can better understand your aviation insurance coverage and be better prepared for the conversations that will arise. 

If you are ever in doubt about any aspect of your coverage/policy, AssuredPartners Aerospace, AOPA’s partner for Aircraft Insurance can help guide you through the insurance process. Call (800) 622-2672 today to speak with one of our experts or visit www.assuredpartners.com/aviators today to learn more. We look forward to serving all your aviation insurance needs.

Topics: Insurance, Insurance, Corporate Partner
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AssuredPartners Aerospace

As AOPA’s strategic partner for aviation insurance, AssuredPartners Aerospace, one of the nation’s largest aviation insurance firms, provides the absolute best insurance protection to fit your needs. Whether you’re flying your own airplane, renting, instructing, or running an aviation business, we have an unmatched depth of knowledge and resources driven by the desire to set a new standard for service and responsiveness. With more than 25 years’ experience serving pilots’ aviation insurance needs, our expertise has been developed over years of working closely with the nation’s best insurance carriers. We understand the exposures that make aviation insurance unique.