The insured in terms of an insurance policy is the person, business or organization that is covered by the insurance contract. The insured is also called the policyholder. This is the party who the insurer agrees to indemnify against a possible loss or damage as stipulated in the insurance contract. The “insured” can also refer to other people who are covered under the terms of the contract.

When dealing with an all risks policy the insured will be the insured person and the members of his family that stay in the same home. Insurance claims can be paid in the form of a payout, or benefits, or the provision of indemnity for legal liabilities.

In car insurance the insured person can nominate other drivers who regularly drive the car as well. These nominated drivers will then enjoy the same cover as the insured. When you nominate other drivers you will pay a higher insurance premium. Some insurance companies will refuse to pay out any claim if someone who was not a nominated driver happened to be driving the car at the time of an accident. Please check the conditions of your own insurance company regarding this issue.

The term insured is also used when referring to the item that is covered, for example the insured car.