The certificate holder receives information
Naming someone as certificate holder tells the insurer who to send the certificate to and tells the reader of the document who requested it. That is all it does. The holder cannot make a claim on your policy because of that designation, and the insurer owes it no duty to notify it of changes unless a separate arrangement says so.
For many routine requests, such as a vendor panel or a simple service agreement, being a certificate holder is all the counterparty needs. They want confirmation that you carry insurance, and the certificate provides it.
The additional insured receives coverage
Additional insured status is added to a liability policy by endorsement, and the endorsement defines how far the protection extends. Typically it covers the added party for liability that arises out of your operations or your work for them, which is why landlords, general contractors, clients and venue owners ask for it. If a third party sues them over something connected to your activity, your policy may respond on their behalf.
Because the scope depends on the exact endorsement wording, two policies that both say additional insured can protect the added party differently. Some endorsements are limited to ongoing operations, others extend to completed operations, and some are limited to the extent of your own negligence.
Related requirements that travel with them
Contracts that ask for additional insured status usually add a few companion requirements. Each is an endorsement or policy condition, not something a certificate can supply on its own.
- Primary and non-contributory wording, which asks that your policy respond first and that the added party's own insurance not be asked to share the loss.
- Waiver of subrogation, which prevents your insurer from pursuing the other party to recover what it paid.
- Notice of cancellation terms, which vary by insurer and may be limited to what the policy allows.
How to avoid a rejected certificate
Before you request a certificate, read the insurance clause of your contract and note every phrase that refers to additional insured, waiver or primary wording. Pass that clause to your broker with the exact legal name of the party. If the endorsement is already on your policy, the certificate can reference it. If it is not, the broker can request it from the insurer, and the certificate should be issued after the endorsement is confirmed.
Last updated October 22, 2026. Written by the Alton Risk placement team.