Certificate holder or additional insured: what is the difference?
By the Rayon research desk · Last reviewed
A certificate holder has been sent proof that a policy exists and has no rights under it. An additional insured is covered by the policy, which takes an endorsement. Ticking the additional insured box on a certificate does not create that status; the endorsement does.
How do the two compare?
| Certificate holder | Additional insured | |
|---|---|---|
| What they have | A document describing the policy | Coverage under the policy for the named work |
| Created by | Issuing a certificate | An endorsement on the policy |
| Can make a claim under the policy | No | Yes, within the endorsement’s terms |
| Shown on the ACORD 25 | In the certificate holder box | By the ADDL INSD column, backed by the endorsement |
Why does this cause so many errors?
Requests arrive as “add us to your policy” or “we need a COI naming us”. Both phrases are used for both things. A service desk under time pressure issues a certificate, ticks the box the requester expects, and moves on.
The ACORD 25 says in its own header that it confers no rights on the holder and does not amend, extend or alter the policy. A certificate that shows additional insured status with no endorsement behind it misstates the coverage, and that is an errors-and-omissions exposure for the agency that issued it.
How should a request be handled?
- Read the contract requirement, not only the email asking for the certificate.
- Check the policy for a scheduled or blanket additional insured endorsement that reaches this party and this work.
- If it is there, issue the certificate and reference the endorsement.
- If it is not, treat the request as an endorsement request to the insurer and tell the client it is not a same-day item.
Sources
- ACORD 25, Certificate of Liability Insurance (the notice printed at the top of the form)
- ISO CG 20 10 04 13, Additional Insured: Owners, Lessees or Contractors, Scheduled Person or Organization
- ISO CG 20 37 04 13, Additional Insured: Owners, Lessees or Contractors, Completed Operations
General information, not legal advice or an interpretation of your policy. Policy forms and endorsements control. Form numbers are © Insurance Services Office, Inc. and are cited for reference.