The post Additional Interest vs. Additional Insured – What’s the Difference? appeared on BitcoinEthereumNews.com.

Navigating the terms used in the insurance industry can be very confusing for a layperson. If you have ever encountered the terms “additional interest” and “additional insured” and aren’t sure what the difference between the two is, you’re certainly not alone.  In this article, we’ll explain additional interest vs. additional insured in simple terms and provide examples of how these concepts apply to different insurance policies. Additional interest vs. additional insured – A quick explanation An additional interest is a third party, which can be either an individual or an organization, that is notified whenever changes are made to the insurance policy. Notably, an additional interest receives no coverage under the policy. Adding an additional interest to an insurance policy has no effect on the insurance premium.  Typically, an additional interest is someone who has a vested interest in the item that’s being insured. For example, if you took out an auto loan from a bank to purchase a vehicle, you might be required to add the lender as an additional interest when you’re insuring the vehicle. An additional interest will be notified of events such as policy cancellations and renewals.  An additional interest can also be referred to as an “interested party” or a “party of interest”. Meanwhile, an additional insured is a third party, which can be either an individual or an organization, that is added to an insurance policy and has the right to make claims on the policy. Most often, an additional insured is added to liability and commercial auto or property insurance policies. Adding an additional insured to a policy increases the insurance premium. Requesting additional insured status is a common practice between businesses. Let’s say that you have a company and want to hire another company to provide a service. You might want to…

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Filed under: News - @ August 7, 2024 2:20 pm