Have you ever heard anyone actually say, “My flight tomorrow is with United Airlines Holdings, Inc.”? If I had to guess, the answer would be “no.” In a world where we use nicknames or shortened versions of company names (for example: United), it seems that using a company’s true name maybe isn’t necessary — or is it? Well, when it comes to insurance, legal names are important. Here’s why.
An insurance policy is a legal, binding contract, and the named “insureds” represent those who are granted coverage based on the terms and conditions within the policy. So, if your company is the one needing the coverage, it’s critical your company’s full legal name is used. Additionally, it’s important the full legal names of any other entity you own or want included in the coverage is also listed (for example: United Ground Express, Inc. or United Vacations, Inc. in addition to United Airlines Holdings, Inc.).
Who Should My Company Name on Our Coverage?
This is a question we get a lot. The best way to address this is to ask yourself the following:
- Do I have any subsidiary or controlled entities that should be included on my policies?
- Do I have ownership interest in any other entities that need coverage?
- How do I cover a joint venture in which I have ownership?
- Who owns the building, equipment, etc. included on my policies?
- How are the vehicles titled that are listed on my auto policy?
Think about it this way — if your building is owned by Main Street, LLC, but Main Street, LLC, isn’t listed as a named insured on your policy and something happens to the building, you may not have coverage. Or, maybe you have a 2023 Ford Explorer that “is” listed on your policy, but it’s actually owned by an employee. In that case, you may not have coverage should an accident occur. It can get tricky, which is why it’s important to ask questions.
Understanding ownership matters when it comes to insurance coverage.
Some policies may provide automatic coverage for certain types of newly acquired or formed majority owned entities for a specified period of time, but that’s not always the case. Every policy is different, and the named insureds that should be included and may need to be specifically listed can vary.
How Can You Be Sure Your Business Is Covered?
The best answer is this — complete an annual comprehensive review of your policies with an insurance broker, like Holmes Murphy. This review should include not only specifics on the ownership structure of your entities and assets, but also on the coverage granted in your policies. And, if something changes during the policy term, let your broker know right away.
Our Holmes Murphy team is focused on understanding you, your business, and your people. We are happy to help you navigate the ownership and named insured journey. Just reach out; we’re happy to chat!
