What is an Insured in the context of insurance?

In the context of insurance, the term "insured" refers specifically to the individual or entity that is covered by the insurance policy provided by the insurer. This means that the insured person or organization has purchased an insurance policy to protect against various risks, such as health issues, property damage, or liability claims. The insured receives benefits or financial compensation from the insurer based on the terms laid out in the insurance contract when a covered event occurs.

Understanding this definition is crucial because it clarifies the relationship between the insured and the insurer, highlighting the insured's right to claim benefits as outlined in their policy. The insured typically pays premiums to the insurance company in exchange for this coverage, making them the beneficiary of the insurer’s risk management services.