A certificate of insurance is issued by a private insurance company or broker to provide proof of insurance. The person named on the certificate of insurance is known as the holder.
An insurance certificate holder is the person who holds the insurance policy.
The certificate of insurance itself bestows no rights upon the holder. It’s merely for informational purposes.
A certificate of insurance lists the type of insurance, amount of insurance, the insuring company and contact information.
Some certificates of insurance may list more than one holder. All the listed parties share in policy ownership.
A certificate of insurance holder is not the same as someone designated as "additionally insured," which means the person has been added to the original policy. For instance, when one party uses another party’s venue to stage an event, the first party is often added as an "additionally insured." Additionally insured individuals have all the same rights as the original policyholder.
Insurance certificate holders will often want the insurance company to contact them in event of policy cancellation before the expiration date. However, most certificates of insurance include a clause stating that the company will only "endeavor" to contact the holder regarding cancellation.
- Photo Credit Comstock/Comstock/Getty Images
What Is Certificate of Liability Insurance?
Certificate Holder Liability Insurance is a new type of insurance coverage that provides a new way to handle coverage problems presented by...
Certificate Holder Vs. Additional Insured
Business liability insurance financially protects your company from people claiming bodily injury on your property. This liability insurance also protects your ...
What Is an Insurance Certificate?
What Is an Insurance Certificate Holder? A certificate of insurance is issued by a private insurance company or broker to provide proof...
Definition of a Cover Holder of Insurance
In the United Kingdom, insurers enter into agreements with coverholders. These brokers act as agents for insurers, writing insurance contracts on their...
How to Request a Certificate of Insurance
How to Request a Certificate of Insurance. A certificate of insurance is evidence that an insurance contract is in effect. ... Certificate...
How to Understand the Acord Certificate of Insurance
What Is an Insurance Certificate Holder? A certificate of insurance is issued by a private insurance ... Certificate of Insurance Policy. A...