Explainer
Certificate holder vs additional insured: what’s the difference?
A certificate holder just gets a copy of the certificate. That’s it. An additional insured is actually covered under the sub’s policy for certain claims, but only if the policy has an endorsement that says so. Being on the certificate as holder doesn’t protect you. The endorsement does.
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Free COI auditSide by side
| Certificate holder | Additional insured | |
|---|---|---|
| What is it? | The person the certificate is addressed to | Someone added to the sub’s policy |
| Are you covered? | No | Yes, for the claims the endorsement covers |
| What proves it? | The certificate itself | The endorsement form in the policy |
| Who defends you in a claim? | You do, with your own lawyer | The sub’s insurer may owe you a defense for covered claims |
A real-world picture
Your electrician sends you a certificate with your company name at the bottom. That makes you the holder. A worker on the job hurts a visitor, and the visitor sues you and the electrician. If you’re only the holder, the electrician’s insurer isn’t there for you. If the policy has an additional insured endorsement that names you, it can be.
Why the box on the certificate isn’t enough
The ACORD 25 has a column that says “ADDL INSD”. A letter Y there is only an indication. The endorsement is what counts, so ask for the form number and the page. Read more in additional insured endorsements explained and ongoing vs completed operations.
What to ask your sub
- Please send the additional insured endorsement page, not just the certificate.
- Is it for ongoing work, finished work, or both?
- Does it name us, or does it cover anyone the contract requires?
Not legal or insurance advice. This is general information. Your contract, your state and your policy decide what applies to you. Ask your broker or attorney.
Common mix-ups
| What people think | What is true |
|---|---|
| “I’m on the certificate, so I’m covered.” | Being listed as certificate holder does not cover you |
| “The description box says additional insured, so we’re good.” | The endorsement on the policy is what counts. Ask for it |
| “Additional insured means I’m the policyholder.” | No. The sub is the policyholder. You are added to their policy |
| “All additional insured wording is the same.” | Wording varies. Check ongoing and completed work |
How to check you are really an additional insured
- Ask the sub’s agent for the endorsement form, not just the certificate.
- Check your exact legal name is on it, or that it uses blanket wording that applies to your contract.
- Check it covers the right kind of work: in progress, finished, or both.
- Keep it with the subcontract.
A real-life example
A roofer damages a customer’s ceiling while working on your project. The customer sues you and the roofer. If you are an additional insured, the roofer’s insurer may defend you under the roofer’s policy. If you are only a certificate holder, you were told a policy existed, and that is all. You then rely on your own insurance.
Which one do you need?
- Certificate holder only: fine for low-risk vendors where you just want proof they have insurance.
- Additional insured: what you want from subs who work on your job or your property.
- Both: most contractors are named as both on a sub’s certificate. The certificate holder line says who gets the paper, and the additional insured wording comes from the endorsement.
Frequently asked questions
Is a certificate holder covered by the policy?
No. A certificate holder only receives a copy of the certificate. Coverage comes from being added to the policy as an additional insured.
Can I be both certificate holder and additional insured?
Yes. Most GCs are both. The holder part is the paper. The additional insured part is the endorsement on the policy.
How do I know I am an additional insured?
You see the endorsement. Ask for the form number and the page. A Y on the certificate is only an indication.
What goes in the certificate holder box?
Your company’s exact legal name and mailing address. If your contract also requires it, name the owner or other parties in the description box.
Is the certificate holder notified if the policy is canceled?
Not always. The standard certificate wording does not guarantee it. Track the end dates yourself.
Can I be both certificate holder and additional insured?
Yes, and most contractors are. The holder line says who receives the certificate. The endorsement is what makes you an additional insured.
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