Who Is the Certificate Holder on a Certificate of Insurance?

A Certificate of Insurance (COI) serves as a concise document summarizing an insurance policy’s key details. It provides a snapshot of coverage, including policy limits, effective dates, and the type of insurance in force. This document acts as official proof that an individual or business holds specific insurance coverage. A central element of this document is the “Certificate Holder,” a party specifically identified on the COI. The primary function of a COI is to provide transparency and verification of insurance to interested third parties.

Understanding the Certificate Holder

A Certificate Holder is a third party who receives a Certificate of Insurance as evidence that another entity, the named insured, has specific insurance coverage. This individual or entity is not the policyholder and does not automatically receive coverage under the policy. The main reason an entity becomes a Certificate Holder is to verify the named insured maintains adequate insurance, often as a contractual requirement.

Common examples of parties who typically request to be named as Certificate Holders include landlords needing proof of a tenant’s insurance, general contractors verifying a subcontractor’s coverage, or clients hiring service providers. Financial institutions may also require COIs from borrowers. While the Certificate Holder receives notification of the policy’s existence and any changes, such as cancellation or renewal, their role is primarily informational.

Information on the Certificate

The Certificate of Insurance clearly designates a section for the Certificate Holder’s information. This section typically includes the full legal name of the Certificate Holder and their complete mailing address. Sometimes, a specific project name or location relevant to the insurance requirement may also be noted.

The insured’s insurance agent or broker is responsible for issuing the COI and populating these fields accurately. The document provides policy details, such as the types of insurance, policy numbers, effective dates, and coverage limits.

Certificate Holder vs. Additional Insured

A common point of confusion arises when distinguishing between a “Certificate Holder” and an “Additional Insured.” An Additional Insured is a party specifically added to the named insured’s policy through an endorsement, which extends a level of coverage to them under certain circumstances. This status provides direct protection, allowing the Additional Insured to potentially receive defense costs or indemnification under the policy for claims related to the named insured’s operations.

Conversely, a Certificate Holder only receives a copy of the COI as proof of the named insured’s coverage and does not receive any protection under the policy. They cannot file a claim against the policy solely by virtue of being a Certificate Holder. If a party requires direct coverage, they must be explicitly named as an Additional Insured, often indicated by an endorsement number or specific language in the “Description of Operations” box on the COI.