What are Certificate Holders?
Certificate Holders are individuals or entities that receive a document called a Certificate of Insurance (COI) from a policyholder. This certificate serves as proof that the policyholder has the necessary insurance coverage, whether it be for property, general liability, or other business-related insurance.
In most cases, a Certificate Holder is a party with whom the insured does business, such as a landlord, contractor, or client. They are not necessarily entitled to any insurance benefits, but they can request confirmation that the policyholder is properly insured. This is often required in business agreements, such as rental contracts or construction projects, to ensure financial protection in the event of accidents or damage.
While the Certificate of Insurance provides assurance of coverage, it does not grant the Certificate Holder any rights to make claims on the policy unless they are also listed as an Additional Insured. This distinction is important in understanding the role of Certificate Holders versus those with direct coverage under an insurance policy.