What is the difference between a certificate of insurance and additional insured status?

A certificate of insurance and additional insured status are two different things, and the difference matters a great deal. A certificate proves coverage exists. Additional insured status actually extends some of that coverage to another party. Many Georgia business owners think a certificate gives a client real protection, but on its own it does not.

A certificate of insurance, often called a COI, is a one-page summary of your policy. It lists your coverages, limits, and dates. It is proof that you bought insurance, and it is handed to clients, landlords, and general contractors as evidence. Importantly, a certificate does not change your policy or give the holder any rights to file a claim. It is informational only.

Additional insured status is different. When you add a party as an additional insured, your policy is changed by an endorsement so that the other party is actually protected under your coverage for claims arising from your work. If a customer sues both you and your general contractor over something your crew did, the additional insured endorsement lets the contractor turn to your policy for defense and damages.

The practical difference comes down to coverage versus proof:

• Certificate of insurance proves you have coverage but grants no coverage to the holder.
• Additional insured actually extends your liability coverage to the named party.
• Both are often required together, since a contract may demand a certificate that also confirms additional insured status.

For example, a Marietta electrical subcontractor signs a contract requiring the general contractor be named as an additional insured. A wiring mistake later causes a $90,000 fire claim. Because the contractor was properly added, your general liability insurance can defend and cover the contractor, satisfying the contract and keeping the relationship intact. Without that endorsement, a certificate alone would not have helped.

Read your contracts carefully, because the wording usually tells you exactly which endorsements are required. We can issue certificates and add additional insureds the right way so your jobs are not held up. Request a free coverage review and a licensed advisor will confirm whether your certificates and endorsements match your contracts.