Policy Holder/Certificate Holder/Additional Insured In the Certificate of Insurance

| By Bhuvnesh Prasher

Policy Holder: The policyholder is the person who purchases the insurance policy. Policyholder can also be identified as one of the Named insured mentioned in the policy.

In most cases, when a big contractor/client wants to work with subcontractors or vendors, Subcontractors or vendors have to provide a certificate of insurance to their clients to prove that they are policyholders and most of the important events are covered in their insurance policy.

Here these big clients are considered as Certificate Holders for Certificate of Insurance.

Certificate Holder: In detail, The certificate holder is an entity that mainly receives the certificate of insurance from subcontractors, vendors, and some other business providers.
The name/details of a client who needs this certificate from the vendors should be mentioned on the bottom left of the Certificate. As specified below:
Certificate of Insurance

Note: Certificate should be issued to the contracting entity, not a department or individual.

Additional insured: An additional Insured is a person who can take benefit from the coverage of another’s policy. Additional insured would have the ability to make claims from other’s policies.

Additional insured may extend the liability coverage beyond the named insured to include other individuals or groups. The additional insured endorsement will give provision to the liability coverage or general liability policy to effectively extend the subcontractor or vendor coverage to the clients.

Let us take an example to understand this in a better way:

Certificate of Insurance1

Where to add details of Additional Insured in Certificate of Insurance (ACORD Form 25):
In ACORD 25 – Certificate of liability insurance, details to additional insured can be added in the places that are marked in the below-mentioned screenshot.
Certificate of Insurance2

If an additional insured is added as a policy vice or we can say LOB vice then corresponding boxes of “ADDL INSR” should be checked and additional details about the additional insured can be added in the “Description of Operation” field of ACORD form.

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