Legal Definitions - insured

Definition: An insured is a person or organization that has their life, health, or property covered by an insurance policy. If the insured experiences a loss, the insurer is obligated to pay the proceeds of the insurance policy. The insurer is the party in the insurance contract that promises to pay compensation. The insurance policy is the contract that outlines the conditions and circumstances under which the insurer will indemnify the insured or other named beneficiaries. The policyholder is the person or organization that purchases the insurance.

• John has car insurance. If he gets into an accident and his car is damaged, the insurance company will pay for the repairs. John is the insured.
• ABC Company has liability insurance. If a customer is injured on their property and sues them, the insurance company will pay for the legal fees and any damages awarded. ABC Company is the insured.

These examples illustrate how the insured is the person or organization that is protected by the insurance policy. If they experience a loss, the insurer is responsible for paying for the damages or losses covered by the policy.