What is a Certificate Holder?
If you’ve ever wondered who exactly a Certificate Holder is, think of them as the person or organization that receives proof of insurance coverage—in this case, a Certificate of Insurance (COI). In the construction world, Certificate Holders are typically general contractors or project owners who want to ensure that everyone working on the job site is properly insured.
A Certificate Holder's name usually appears on the bottom left of the COI in the Certificate Holder box. If there isn’t enough room, the insurance broker might note it in the Description of Operations or on an Additional Remarks page.
Here’s the kicker: being listed as a Certificate Holder doesn’t give you any magical rights or protection. It just means you’ve got the document in hand as proof that the insured party has coverage. It’s all about keeping you informed—you might get a heads-up if the policyholder cancels their insurance, but only if the policy itself allows it.
Certificate Holder vs. Additional Insured: Big Difference
So what is the difference between Certificate Holders and Additional Insureds?
This is a common (and sometimes pricey) mistake in the construction industry. So, here’s the lowdown:
Named Insured = The person or company that owns the insurance policy. They get full benefits from the coverage, regardless of who caused the claim.
Additional Insured = Someone who gets added to the policy and can claim benefits if they’re working with the Named Insured and something goes wrong.
Certificate Holder = Not so lucky. They don’t get any coverage from the policy just because their name is on the COI. It’s purely for show (and paperwork) unless they’re also listed as an Additional Insured.
So, remember: listing someone as a Certificate Holder is more of an administrative formality than a protective measure. Want to make sure someone’s covered under your policy? They need to be added as an Additional Insured. Simple as that!