What term describes another person listed on a policy who usually receives coverage at no additional cost?

The term that describes another person listed on a policy who usually receives coverage at no additional cost is "Additional Insured." This designation allows the person or entity added to share in the coverage provided by the insurance policy, offering them protection against certain risks that may arise from the activities of the primary insured.

By being listed as an additional insured, these individuals or entities can benefit from various coverages that the primary insured holds, which can be crucial in situations where liability for damages or claims might extend beyond the primary insured's actions. This concept is commonly used in commercial insurance policies, especially in contexts like subcontractor agreements, where a contractor may want to ensure that a client or project owner is also protected under their liability coverage.

Terms such as "First Named Insured" refer to the primary policyholder, while “Excluded Insured” identifies individuals who are not covered under the policy. "Secondary Insured" is not a standard term in insurance, as the industry typically refers to these individuals as additional insureds. Understanding these distinctions helps clarify the roles and responsibilities of all parties covered under an insurance policy.