The short answer
A certificate holder is simply the party that received the certificate. It confers no coverage whatsoever. An additional insured is a party added to your policy by endorsement, giving them the benefit of your coverage for liability arising out of your work.
If your contract says 'name us as additional insured' and your broker only lists the party as certificate holder, you are in breach of contract and the other party is unprotected.
How they compare
The practical differences show up at claim time.
| Certificate holder | Additional insured | |
|---|---|---|
| Gets a copy of the COI | Yes | Yes |
| Covered under your policy | No | Yes, per endorsement wording |
| Defense costs paid for them | No | Yes, typically |
| Requires a policy endorsement | No | Yes |
| Affects your premium | No | Sometimes, small charge or blanket |
| Uses up your limits | No | Yes |
Blanket vs. scheduled endorsements
A scheduled additional insured endorsement names each party individually — accurate, but slow when you have many clients. A blanket endorsement automatically extends status to any party you have agreed in a written contract to include, which is what most contractors and service businesses should carry. Blanket wording still has conditions: the agreement must be in writing and executed before the loss.
Ongoing vs. completed operations
Construction contracts usually require additional insured status for both ongoing operations (CG 20 10) and completed operations (CG 20 37). Providing only one is the most common certificate rejection we see. Check which form numbers the contract names and make sure both appear on the certificate.
Frequently asked questions
Does adding an additional insured cost money?
Sometimes a small per-certificate fee, but most modern policies include a blanket endorsement at no additional charge.
Can a landlord be an additional insured?
Yes, and most commercial leases require it, typically limited to liability arising from your use of the premises.
Does additional insured status reduce my limits?
Yes. They share your limit rather than getting their own, which is one reason contracts often require an umbrella on top.