Does There Have To Be A Certificate Holder On The Certificate Of Liability Insurance Form

Certificate of liability insurance.

Does there have to be a certificate holder on the certificate of liability insurance form. Your insurance agency will just inform him of any changes to your policy. A certificate of insurance isn t part of a policy and doesn t add remove or alter any provision of an insurance contract. A certificate of insurance holder is not the same as someone designated as additionally insured which means the person has been added to the original policy. However a certificate of insurance is not insurance coverage itself.

In a nutshell as the certificate holder as the certificate holder your client doesn t have any rights to your insurance policy. The middle portion of the certificate contains a summary of the insured s liability coverages a description of the insured s operations and the name and address of the certificate holder. As a certificate holder you receive a copy of the certificate of insurance. Certificate of insurance forms have a special place on them to add the name and address of the certificate holder.

Adding clients to your certificate of insurance is a formality. Rather it is a document that shows your business is insured. A general liability insurance policyholder for example pays premiums for coverage in the event of bodily injury property damage and advertising or personal injury associated with work on a project. Reviewing certificates of liability insurance is a critical component of risk transfer from project owner to a third party vendor.

Your client will just know that you have insurance for any work that you do. For instance when one party uses another party s venue to stage an event the first party is often added as an additionally insured additionally insured individuals have all the. This should be reviewed not only to protect the project owner but to extend additional insured status to the project manager and possibly a lender. While it sounds officious a certificate holder is only the entity to whom the certificate of insurance was issued upon request.

The main contractor is provided with a certificate of insurance that shows that the sub contractor or vendor the name insured does in fact maintain insurance and names the main contractor as the certificate holder it is just a proof of insurance. Certificates only outline the specifics of the coverage and do not extend coverage to the certificate holder. Originally published october 2018. Certificate holders possess proof of insurance on commercial general liability policies while additional insureds are other parties coverage has been extended to beyond the initial policyholders.

Also known as a coi you would provide a certificate of insurance to prove that you are insured. However certificates are not contracts. Is a certificate of liability insurance a legal document. Published may 26 2020 3 minute read.