Ensuring the name on your insurance policy matches your full legal entity name is a critical detail that protects your business. A mismatch can lead to denied claims, uncovered lawsuits, and financial risks. Your legal entity name, as registered with government bodies, should be listed exactly on the policy, including any suffixes like “Pty Ltd.” Regularly review your policy, especially after changes to your business structure, and consider working with an insurance broker to ensure all relevant entities are properly covered.

When you buy insurance for your business, there’s one detail you don’t want to overlook: making sure that the name on the policy – the “Insured” name – exactly matches your business’s full legal name. This might sound like a simple thing, but many businesses don’t realise how important it is.

Ensuring these names match is the single most important part of an insurance policy. If the Insured name isn’t correct, or the name entered as the Insured isn’t a legal entity, then the insurance contract becomes invalid and could result in a claim being denied.

A legal entity name is the official name of your business as it appears in government records. It’s what you use on legal documents – like contracts, tax filings, and insurance policies – and it can be different to a business name.
Depending on your structure, this name could look different:

1. Sole Traders: Your own name or a registered trading name.

2. Companies: Typically ends in something like “Pty Ltd” in Australia.

3. Trusts and Partnerships: Could include the trustee’s name or partnership name.

“Your legal entity name on insurance documents is more than just a name – it’s your business’s identity in the eyes of the insurer. Getting it right ensures your coverage is secure when you need it most.”
— asic.gov.au

Below are a couple of examples specific to the film and television industry:

Scenario:

A filmmaker runs a business called “Southern Cross Films”, which is the name shown in the film credits and marketing. However, the actual legal entity registered with ASIC is “Southern Cross Media Pty Ltd”.

Risk if incorrect:
If the insurance policy lists “Southern Cross Films” instead of “Southern Cross Media Pty Ltd”, the policy may not technically cover the production company. This could jeopardise claims related to on-set accidents, equipment loss, or public liability.

Scenario:
A freelance cinematographer named Alex Green provides services through a registered company called “AGC Visuals Pty Ltd”, but mistakenly puts their personal name, Alex Green, as the insured on their public liability and equipment insurance.

Risk if incorrect:
If a claim arises – such as a light falling and injuring someone on set – the policy may not respond if the work was contracted under AGC Visuals Pty Ltd. The insurer could argue the insured (Alex Green) is not the same as the entity providing the service.

Did You Know
In Australia, your legal entity name is not the same as your trading name. While a trading name is how your business is known to customers, your legal entity name is the official name registered with ASIC and must be used on legal documents, including insurance policies, to ensure proper coverage.

To avoid the common pitfalls, here are some simple steps to follow:

1. Use the Full Registered Name: Always use the full legal name, including abbreviations like “Pty Ltd” or “LLC.” Avoid using nicknames or shorter versions.

2. Double-Check for Renewals: Even if you had the name correct initially, review it each time to renew your policy. Business names and structures can change, and it’s important that your insurance reflects that.

3. Include All Entities If Needed: If you operate through multiple entities, consult with an insurance broker about which names should be included. Missing even one entity could mean part of your business isn’t covered.

4. Get Help From a Broker: Insurance brokers are experienced in these details. They can help ensure the name on your policy is accurate and that your business has the protection it needs.

If you’re unsure of your legal entity name, check your official documents, like your business registration or licensing paperwork. For companies, refer to the name listed on your tax filings, or a quick search on the ASIC website will show your registered name. Trusts will have their name in the trust deed.

Regardless of your business structure or branding, the name on your insurance policy must align precisely with your legal registration. Including the correct legal entity ensures there’s no ambiguity when it comes to claims, lawsuits, or verifying your coverage. It’s key to making sure your insurance covers you fully when you need it. Always double-check this with your broker to avoid costly mistakes.

If you have any questions about your legal entity name on your insurance documents, reach out to us via our website  reach out to Midland. Our brokers are always happy to help.