Side by side
| Certificate holder | Additional insured | |
|---|---|---|
| What it is | The name on the certificate | A party added to your policy by endorsement |
| Covered by your policy? | No | Yes, for the claims the endorsement describes |
| Can the insurer defend it? | No | Yes, when a covered claim is made against it |
| Gets notice if the policy is cancelled? | Only if the policy provides it. A certificate does not guarantee it | Depends on the policy and endorsements |
| Where it comes from | Your broker issues a certificate | The carrier adds an endorsement to the policy |
Why the mix-up costs money
A contract may ask for "proof of insurance" or require you to "name the owner as additional insured." Delivering only a certificate to a client who needs additional insured status leaves that client without coverage and you in breach of the contract. A certificate is information, it does not change what the policy covers.
How to handle it
- Read the insurance section of the contract for the exact words "additional insured", "certificate holder" and "waiver of subrogation"
- Ask your broker for the endorsement, not only the certificate, when the contract requires additional insured status
- Make sure the certificate lists the endorsement form numbers so the client can see it exists
- Keep your subcontractors' certificates and endorsements on file for the same reason
Send us the contract
We will tell you which endorsements the contract needs and issue the certificate to match. Call (858) 925-9555 or request a review online — only your name, phone and email are required; we collect project details by phone. Asena Capital Insurance Services, CA License #6008596.
Frequently asked questions
Is a certificate holder covered by my insurance?
No. A certificate holder only receives proof that you have coverage.
Can someone be both certificate holder and additional insured?
Yes. Many clients are named on the certificate as holder and also added to the policy as an additional insured.
Does a certificate of insurance prove someone is an additional insured?
Only if the endorsement actually exists on the policy. The certificate shows it, the endorsement creates it.
Who pays for additional insured status?
That depends on the policy. Some carriers include it, some charge for each endorsement.