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Difference Between Certificate Holder and Additional Insured

Financial loss arising from an uncertain risk in a common occurrence. This has necessitated measures aimed at protecting against the risks, commonly referred to as insurance. This is a process whereby the insurer assumes a guarantee of a risk in the form of payment from the insured with a promise to compensate in the event of the occurrence of the covered loss. A contract is thereafter issued, stating the terms and conditions of the contract. Various documents may be issued, such as a certificate holder and an additional insured document.

 

Who is a Certificate Holder?

This is a document showing proof of ownership of insurance, hence confirming the validity of the policy. A certificates holder has the right to be notified or receive notifications in case of changes or cancellation of the policy by the policyholder and is not authorized to make a claim under the policy. 

 

What does Additional Insured mean?

This provides rights under an insurance policy in the event of a future claim. An additional insured, however, have rights under the policy hence is authorized to make a claim on it. The holder, however, is not informed of any changes made to the policy.

 

Similarities between Certificate Holder and Additional Insured

  • Both are issued in relation to insurance

 

Differences between Certificate Holder and Additional Insured

Definition

A certificate holder is a document showing proof of ownership of insurance. On the other hand, additional insured is a document which provides rights under an insurance policy in the event of a future claim.

Claims applicable

A certificate holder is not authorized to make a claim under the policy. On the other hand, an additional insured have rights under the policy hence is authorized to make a claim on it.

Rights

A certificate holder has the right to be notified or receive notifications in case of changes or cancellation of the policy by the policyholder and is not authorized to make a claim under the policy. On the other hand, an additional insured has rights under the policy hence is authorized to make a claim on it. The holder, however, is not informed of any changes made to the policy.

Certificate Holder vs. Additional Insured: Comparison Table

 

Summary of Certificate Holder vs. Additional Insured

While a certificate holder is a document showing proof of ownership of insurance, an additional insured is a document which provides rights under an insurance policy in the event of a future claim. It should be noted that a contractor or a client can both be a certificate holder as well as an additional insured. This assure them all the rights, as they both would be covered by the policy and receive any changes made to the policy or cancellation. 

 

Tabitha Njogu

Tabitha graduated from Jomo Kenyatta University of Agriculture and Technology with a Bachelor’s Degree in Commerce, whereby she specialized in Finance. She has had the pleasure of working with various organizations and garnered expertise in business management, business administration, accounting, finance operations, and digital marketing.

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References :


[0]Kealy Dwight. UNDERSTANDING NAMED, AUTOMATIC, AND ADDITIONAL INSUREDS IN THE CGL POLICY. Lulu.com Publishers, 2014. https://books.google.co.ke/books?id=9DzpBgAAQBAJ&pg=PA14&dq=difference+between+certificate+holder+and+additional+insured&hl=en&sa=X&ved=0ahUKEwjq6OnA8bDiAhVqxYUKHdweDeUQ6AEIJjAA#v=onepage&q=difference%20between%20certificate%20holder%20and%20additional%20insured&f=false

[1]Honthaner Eve. The Complete Film Production Handbook. CRC Press Publishers, 2013. https://books.google.co.ke/books?id=PTv7AAAAQBAJ&pg=PA127&dq=difference+between+certificate+holder+and+additional+insured&hl=en&sa=X&ved=0ahUKEwjq6OnA8bDiAhVqxYUKHdweDeUQ6AEIKzAB#v=onepage&q=difference%20between%20certificate%20holder%20and%20additional%20insured&f=false

[2]Horn D & Meislik I. The Commercial Lease Formbook: Expert Tools for Drafting and Negotiation. American Bar Association, 2010. https://books.google.co.ke/books?id=DbGXq1KSDAkC&pg=PA415&dq=difference+between+certificate+holder+and+additional+insured&hl=en&sa=X&ved=0ahUKEwjq6OnA8bDiAhVqxYUKHdweDeUQ6AEINzAD#v=onepage&q=difference%20between%20certificate%20holder%20and%20additional%20insured&f=false

[3]Image credit: https://commons.wikimedia.org/wiki/File:Wheelchair-insurance--.jpg

[4]Image credit: https://commons.wikimedia.org/wiki/File:A_proof_of_insurance_in_Beijing_02.jpg

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