Transcript:
Hi there, I’m Rachel Ostrow, an Underwriter with Distinguished Programs and I specialize in our Express Hotel Umbrella program. I’m based in the Dallas-Fort Worth area and I’ve been with Distinguished for 5 years now. Before that, I spent 13 years in the hospitality industry so I understand the unique needs of our clients in the hospitality space.
One of the most common questions that I get asked is, “Can a franchisor be added as a named insured?”
That’s a great question! The short answer is not usually. Here’s why: Franchises typically don’t have ownership or direct management of the property. This means they don’t carry the kind of risk that would give them an insurable interest, and without that, they don’t meet the criteria to be a named insured. Instead, franchisors are usually added as an additional insured on the underlying policy and our umbrella policy follows that structure.
That brings us to another important point. What is the difference between a named insured, an additional insured, and someone who is automatically covered under the policy? Let’s break that down.
Named Insured: Any organization or entity physically listed on the policy. They have full coverage and full responsibility. They can make changes, file claims, and are the central focus of the policy.
Additional Insured: This is someone added by endorsement, usually because of a business relationship. They get limited coverage, typically for liability arising out of their connection to the named insured.
Automatically Covered Insured: These are people or entities who are granted coverage by the policy language, like employees acting within the scope of their duties or real estate managers working on your behalf.
At Distinguished, we follow clear guidelines when we’re reviewing who qualifies as a named insured. We look for entities that are directly involved in the business and carry some level of risk.
That might include newly acquired or formed organizations, parent companies, subsidiaries and trusts, partnerships, LLCs, or joint ventures if the named insured is responsible for placing the insurance.
We also extend coverage to individuals like sole proprietors and their spouses, partners, members and managers of LLC’s, executive officers, directors and employees while they’re doing their job, leased workers (not including temporary workers), real estate managers working on your behalf, and even people driving a vehicle you own, loan or hire with your permission.
So while franchises usually aren’t included as named insureds, our coverage is designed to be broad and flexible for those who are actively involved in your business operations.
If you have any questions or want to talk through your specific situation, we’re always here to help. Thank you for watching and have a great day.
About Rachel:
Rachel Ostrow, an Underwriter at Distinguished Programs in Dallas-Fort Worth area, spent 13 years in the hospitality industry. In the past year alone, she’s reviewed 250 accounts with over 1,000 hotel locations nationwide, highlighting her attention to detail.
