Everything You Need to Know About Certificate Holders

March 20, 2023

Certificates of insurance forms come with a lot of labels and formalities like Certificate Holder.

In this post we will explain what Certificate Holder is and the best way to tackle it for COI management purposes.

What Is A Certificate Holder On Insurance

A certificate holder is someone that takes receipt or evidence of the COI. The certificate holder is the party to which the certificate of insurance is provided to. So if you’re hiring someone, and you requested the COI, then you’re the certificate holder.

A COI’s Certificate Holder usually appears at the bottom left of the certificate in the designated Certificate Holder box. If the broker does not have enough room, they may record the Certificate Holder in the Details of Operations or on a Supplementary Comments page.

ACORD Form Certifficate. Holder

Should You Be Listed as a Certificate Holder on Vendor COIs?

Being a Certificate Holder on someone else’s insurance policy may appear as though it comes with certain benefits, but the truth of the matter is that such status affords no protection.

Certificate holder benefits

In fact, in most cases (98% by our estimate), insurers fail to notify Certificate Holders even if the policyholder decides to cancel their coverage. 

What’s more shocking? It turns out brokers don’t even always share the names and details of certification holders with insurers! As such, being listed does not guarantee any sort of notification or benefit.

Certificate Holder vs Additional Insured – How are they different?

A certificate holder and an additional insured are not viewed the same by insurers.

An additional insured is a person or entity that’s explicitly added to an insurance policy and receives the same liability protections as the policyholder if a claim is filed. 

An important distinction to be made when it comes to additional insured endorsement forms is the warning at the top of them – “this endorsement changes the policy; please read it carefully”.

What this means for you, as someone amending coverage for another entity named in your prior agreement, is that extensive care should go into reading through and understanding each line or risk leaving yourself vulnerable where insurance may otherwise have given protection.

An additional insured endorsement is an important form to get right. It’s not uncommon for claims to be made against putative additional insureds if the name on their endorsements was incorrect – even just a typo! Always double-check that your details are accurate so you’re never left out of pocket due to someone else’s oversight mistake.

By contrast, a certificate holder is simply a person or entity that has received a COI. This means that the COI is just proof that your intended third-party vendor is insured. It doesn’t imply that the rights and protections listed in the vendor’s policy are equally transferred or protect your business too.

How Evident Improves COI Management

Asking to be listed as a certificate holder can provide peace of mind. Although it may seem insignificant, this minor action can cause delays in the insurance approval and third-party vendor integration processes.

Opting to partner with Evident you’ll get: 

  • An easier verification process
  • Faster auditing for certificates
  • Reliable notifications

Businesses that work with several different vendors can simplify their work processes and free up valuable employees for other job-related tasks by using Evident to help manage the Certificate of Insurance (COI) process.

Evident simplifies the process of verifying third-party vendors, streamlining the request process and leaving no stone unturned.

Meanwhile, the automated system means that you can easily see when your third-party vendor’s insurance policies are near expiration. Or if potential third parties don’t have enough coverage to meet your minimum requirements.

Don’t let the insurance verification and compliance process slow down your business. Find out how Evident can help make managing your third-party vendor network easier.


News and Resources

Ready to reduce your third-party risk with automated Insurance Verification and Fulfillment?