Certificate holder vs additional insured
4 min read · Last updated
A certificate can name a company as certificate holder, and its description box may say that company is an additional insured. These are different things. This guide explains the difference in plain words, the wording that usually appears, what to ask the insurance agent for and how to review it. General information, not legal or insurance advice; check your contracts and your insurer.
Two different things
The certificate holder is the party the certificate is addressed to. It is usually the company that asked for proof of insurance, such as a general contractor, property manager or owner. Naming someone in the holder box records who received the document. It does not change what the policy covers or who the policy protects.
An additional insured is a party that a policy also covers, for certain claims, because of an endorsement attached to the policy. The insurer issues the endorsement. It names the party or describes a group of parties, and it states the work, the period and the coverages it applies to. Until that endorsement exists, the party does not have additional insured status, whatever the certificate says.
Why a name on a certificate is not enough
A certificate is a summary issued by an agent, and it can describe terms the policy does not contain. The description box is free text, so it can say almost anything the issuer typed. A name there is a reason to request the endorsement and read it, not evidence that the endorsement exists. Common description-box wording includes the following:
- 'Company is named as additional insured on a primary and non-contributory basis, per written contract.' This is a statement to check against the endorsement.
- 'Waiver of subrogation applies in favor of Company.' Look for the endorsement that grants it.
- 'Project: name and address.' A project reference only; it does not grant any status.
- 'Certificate holder is included as additional insured as required by written contract.' Confirm which endorsement, which policies and which period.
What to ask the insurance agent for
Ask in writing, and name each item. A specific request is easier to answer correctly and easier to file.
- The additional insured endorsement for each policy the contract requires, with its form number and the policy numbers it attaches to.
- The named party or parties, written exactly as the contract writes them.
- Whether the endorsement covers ongoing operations, completed operations, or both, and for how long.
- The waiver of subrogation endorsement, if your contract asks for one, with the party it protects.
- Confirmation that each policy is in force for the dates of the work.
A short review checklist
Use this list for each vendor before work starts and each time a policy renews. Record the date and the reviewer.
- Is the holder name the exact legal name and address in the contract?
- Does the description box name a policy and an endorsement, or is it only a general statement?
- Is there an endorsement for each policy the description names?
- Does the endorsement name your company, or the group of parties your contract uses?
- Do the policy dates cover the dates of the work?
- Has someone read the endorsement itself, not only the certificate?
How ShowMeTheDocs helps
ShowMeTheDocs reads the text of a certificate PDF and lists the endorsement wording it finds, including additional insured and waiver of subrogation, as hints. It also lists the holder name it detects and flags a name that differs from the one expected for the requirement. The hints never change a status; a person checks the document.
Each requirement can carry contract checks, such as the additional insured wording, and a reviewer ticks them off on the vendor page. When a document lacks the wording, Request from broker emails the vendor's insurance agent the exact wording the requirement needs.
Questions
Does wording on a certificate make a company an additional insured?
Not by itself. The endorsement on the policy grants the status. Ask for the endorsement and check the named party.
Is the holder always the additional insured?
No. The holder and the additional insured can be different parties. Your contract states who must hold the certificate and who must be named as additional insured.
What if the description box and the endorsement disagree?
Go by the endorsement for what the policy says, and raise the difference with the agent in writing before work starts. Your broker or attorney can advise on what the contract requires.
Who can confirm the wording?
Your insurance broker, or an attorney who works on construction contracts where the work takes place.
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