Distinctness Between Certificate Holder and Additional Insured

Certificate Holder is the person who have proof of insurance or Certificates of Insurance (COI) from the person they are dealing with, he is the holder of the policy, also known as “Named Insured”.

Additional Insured is the person who is benefited from the coverage of any policy by the Insured. He is not the holder of the policy, but the benefits are being extended to the Additional Insured through something called as an endorsement.

These terms are very much important to know like COI, insured (Holder of the policy), Additional Insured and divergence among them to ensure the protection of the business we are doing from risks and paying claims if any occurs, so that we can make sure that we have ourselves covered.

As we go through, we learn about the meanings of these terms, distinctness between them also how you should not be responsible for paying claims in case of any damage.

But before getting with there are some fundamental terms which you must know regarding Certificate Holder Insurance, they are general liability insurance and the Certificate of Insurance. These both things combinedly make Certificate Holder Insurance, now let’s come to know what they mean.

General Liability Insurance

General Liability Insurance is a policy which covers any business or company from physical injuries, property or infrastructure damage. This insurance is very much useful as it covers the organization from unexpected incidents or accidents which may cause the company to pay a lot of expenses such as medical expenses, legal fee, property recovery, etc., if ignored. Any undetermined accidents may cause disturbance in the growth of the company, taking general liability insurance covers us from all the damage that would occur

COI appealing is very much important by the certificate holders from the insured with whom they are dealing with as they keep you out of liability to play claims in case of any unexpected events, because of this you will not be in trouble.

Certificate of Insurance

A certificate of insurance is a certificate which contains key information regarding the insurance policy like limit of the coverage, status of the policy, policy holder’s name and many more.

The certification holders appeal for the COI from the Insured with whom they are dealing or working with, COI acts as an evidence that the insured have the necessary coverage. That makes sure that the certificate holders will not be responsible for any claims as they are covered under the policy the insured has.

Policy Holder

Policy Holder is the person who owns the insurance policy, and they are also known as “named insured”, COI, which is given to certificate holders contains their name. The policy holder gets the comforts of the insurance policy in case of insurance coverage. The money required to pay for the insurance is being paid by the policy holder.



Certificate Holder

Certificate Holder is the person who have COI which is being given by the insured with whom they are working with. To prove that the company or any business have correct coverage limits, COI is being provided. The Certificate Holder doesn’t have any control over the insurance policy that the with COI, it just acts as an evidence. One must be careful with coverage limits on COI as the insured has right to change it and that might create issues during paying claims, it can be avoided by inspecting it frequently.

Additional Insured

Additional Insured is the person who gets benefits by the coverage of others insurance policy. Initially additional insured won’t be part of the policy but later any individuals or organizations can be added to the insurance policy of the as additional insured through endorsement (similar to an amendment) and the coverage is being extended to them, this lets additional insured enjoy the advantages of the insurance policy other than insured. Someone with additional insured status has right to claim in case of any unexpected event. The insurance policy covers both insured and additional insured under critical circumstances like physical damage, property damage, etc. This additional insured endorsement is very much beneficial as it covers individuals and organizations under the insurance policy of the insured.

How Much is the Premium for an Additional Insured Endorsement?

As we said above the additional insured is being added to the insurance policy through endorsement and the cost is very low as the additional insured are added to the at marginal cost which is very low. That means the extension of coverage to the additional insured is very less compared to the cost of the entire policy, the additional insured can enjoy the benefits of the named insured’s policy at very cost. There are also some limitations on coverage extension like the coverage should come into action when the additional insured is responsible for the claim or the when the insured is responsible.

Now let’s get to the main difference. As you have come through all the basic terms, now you can have a better understanding of the difference between certificate holder and additional Insured

Certificate Holder vs Additional Insured

Certificate Holder doesn’t get any comforts by the coverage of the policy. He just gets COI as proof that proves that the company or business is covered by an insurance policy currently and has correct coverage limits and in case of any claim it is covered under the policy, when working with any company appealing for COI is very important.

The benefits of the policy can be extended to the certificate holder, but he should be the additional insured of the policy, then their name is also given in the COI. So that they are also covered under the insured’s policy.