Endorsements may broaden or restrict the coverage provided by an insurance policy. One example of a policy addendum that broadens the ‘Who Is An Insured’ is an additional insured endorsement. An additional insured is typically someone who is doing business with the named insured.

What is additional insured insurance endorsement?

An additional insured extends liability insurance coverage beyond the named insured to include other individuals or groups. An additional insured endorsement protects the additional insured under the named insurer’s policy allowing them to file a claim if sued.

What is the difference between an additional insured and a certificate holder?

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.

What are certificate of insurance endorsements?

Basically, an insured endorsement on a certificate of insurance is where one party will add the other party as an “additional insured” on their commercial liability insurance policy.

How much does an additional insured endorsement cost?

Some business policies have “blanket additional insured” endorsements. For a flat price, these cover anyone that you contractually agree to include as AI. Otherwise, insurers charge for each Additional Insured, usually starting at $25.

What rights does a certificate holder have?

A certificate holder’s only right is to receive notification if the policyholder changes or cancels his policy. He does not have any coverage under the policy and cannot make a claim on your policy. Your client can feel sure that you have coverage and that he will be informed if you cancel the policy for any reason.

What does it mean to be the certificate holder on a COI?

The certificate holder is the person who is receiving the COI from the insured. The insured is giving the COI to the certificate holder to prove they have proper coverage.

Can a certificate of insurance be an endorsement?

A certificate of insurance is not enough. An additional insured endorsement does not, however, state an insurance policy’s terms and conditions.

What does a certificate of insurance say about an additional insured?

The standard certificate of insurance generally states that the additional insured is an insured under the listed policy (ies) and that nothing in the certificate supersedes, changes or replaces what is contained in the identified policy (ies).

Can a third party pay for an additional insured endorsement?

Additional insureds are allowed coverage under the policy owner’s contract, but they do not hold the responsibility of paying the premium, nor do they have the power to modify terms of the policy. If we return to our example of hotel construction, additional insured endorsements might cascade like so:

Where can I find proof of additional insured status?

It is not unusual that the only evidence of additional insured status is a form document—known as a certificate of insurance—that is usually prepared by the insurance broker for the named insured.