Who is referred to as the party covered by an insurance policy?

The party covered by an insurance policy is referred to as the insured. This term designates the individual or entity that holds the insurance policy and is eligible to receive benefits under it in the event of a covered loss. The insured pays premiums to the insurer in exchange for protection against potential risks specified in the policy.

In contrast, the insurer is the company that provides the insurance coverage and is liable for settling claims made by the insured. The adjuster is a professional, often working for the insurer, responsible for evaluating claims and determining the appropriate compensation. The claimant is typically someone who makes a claim under the policy, which could be the insured or a third party entitled to make a claim based on the insured’s policy. Thus, the distinction lies in that the insured holds the rights to the benefits of the policy, while the other roles involve interaction with the insurance process from different perspectives.