Are You Really Covered? Understanding Additional Insured Status on a Certificate of Insurance

In the world of insurance and business-to-business services, few documents create more confusion than the Certificate of Insurance (COI). This is especially true for contractors, real estate professionals, and service vendors in industries like construction, healthcare, and property management. Knowing the difference between being a certificate holder and an additional insured can be the difference between peace of mind and financial risk.

This guide explains how COIs really work, why additional insured status matters, and what you need to ask for to protect your business. If you're a Connecticut-based contractor or service provider, visit our Small Business Resource Hub to explore more local insurance strategies.

What Is a Certificate of Insurance (COI)?

A certificate of insurance is a summary document that proves an insurance policy exists. It shows who is insured, the type of coverage, policy limits, and coverage dates. The standard form used is the ACORD 25.

These forms are commonly exchanged during subcontracting agreements, lease arrangements, vendor setups, and compliance requirements.

But here’s the catch: a COI doesn’t guarantee any coverage. Being listed on a COI alone does not protect you in a claim unless you're explicitly added as an Additional Insured.

Certificate Holder vs. Additional Insured

Certificate Holder

• The entity receiving the COI

• Not covered under the policy

• May receive notice of cancellation or changes

Additional Insured

• Formally added to the insurance policy through an endorsement

• Covered by the insurer for claims related to the named insured’s operations

• Critical for subcontractors and vendors working under another entity

How to Confirm You’re Covered

1. Check the Description of Operations box on the COI. It should include a statement like:

   "[Your Company Name] is included as an Additional Insured with respect to general liability, per endorsement CG 20 10, as required by written contract."

2. Request a copy of the endorsement. This document amends the policy. Common forms include:

   
   

   • CG 20 10 – Ongoing Operations

   • CG 20 37 – Completed Operations

   • CG 20 26 – Designated Person or Organization

   • Blanket Additional Insured (triggered by a contract)

Without this documentation, there’s no guarantee of protection.

Real-World Scenario

Imagine you’re a subcontractor installing flooring in a commercial building. A visitor trips on your equipment and sues both you and the general contractor. If you're not listed as an Additional Insured on the GC’s General Liability policy, their insurance won’t help—you’ll need to rely on your own policy (if available).

Many vendor agreements require this protection. If you need help reviewing your contracts, our business insurance advisors can help.

Industries That Commonly Require Additional Insured Status

• Construction – GCs and subs

• Real Estate – Managers, inspectors, stagers

• Healthcare – Facility contractors, home care

• Event Vendors – DJs, caterers, coordinators

• Maintenance Services – Janitorial, landscaping

If you operate in any of these spaces, make sure the Additional Insured language is in your contracts.

What to Request from a Vendor

When partnering with vendors:

1. Request a COI listing you as an Additional Insured

2. Obtain a copy of the Additional Insured endorsement

3. Confirm the policy includes:

   • Primary and non-contributory language

   • Waiver of subrogation

For blanket endorsements, ensure your contract explicitly requires the status.

Why a COI Alone Isn’t Enough

• The ACORD 25 form clearly states: “This certificate is issued as a matter of information only...”

• Being listed on a COI does not mean you’ve been added to the policy

• COIs can be outdated or incorrect

Bottom line: Only the endorsement provides legal rights and protection.

Frequently Asked Questions (FAQ)

• Am I covered if I’m just a certificate holder? No. It simply proves insurance exists—it does not provide any protection.

• Can I be both a certificate holder and an Additional Insured? Yes. Being both ensures you receive documents and legal coverage.

• What policies allow Additional Insureds? Mainly General Liability, but sometimes Auto Liability and Umbrella as well.

• What’s a blanket Additional Insured endorsement? It allows insureds to automatically cover others when a contract requires it. Still, confirm it's in force.

• Can I file a claim as an Additional Insured? Yes, if it falls under the policy and endorsement terms.

• Is there an extra cost? Often no. Many policies include it at no cost or a small fee.

• Does this apply to Workers' Compensation? Not directly. You can’t be an Additional Insured on a WC policy, but you may request a Waiver of Subrogation.

• What if I assumed I was covered but wasn’t listed? You may not be protected. Always confirm in writing and get documentation.

Protect Your Business the Right Way

Being a Certificate Holder alone doesn’t offer protection. If you’re a contractor, vendor, or service provider, take these steps:

• Request Additional Insured status in writing

• Verify it appears on the COI

• Obtain the actual endorsement form

These simple steps can prevent major liability and legal headaches down the road.

Want help reviewing your vendor COIs? Let our licensed agents take a look.

At Insure Connecticut, we help local businesses protect what matters most.

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