The Difference Between A Certificate of Insurance and An Additional Insured

By: William Forbes

Erie just published a great blog post (link here) on the difference between a certificate of insurance and being an additional insured. For all our commercial clients out there, I wanted to highlight this post as good educational reading.

As the blog post points out, "The key difference between a certificate of insurance and an additional insured comes down to whether you have coverage under someone else’s insurance policy."

A certificate of insurance proves the insurance and limits are in force. The certificate simply verifies that an individual or company has valid insurance.

The purpose of being an additional insured on a policy is more sophisticated. Being an additional insured provides insurance coverage and rights to defense under the policy. If you are named an “additional insured,” you are given coverage and some rights under the policy, in the event of a claim.

Typically, an additional insured is a general contractor who will obtain the benefits of insurance protection under a subcontractor's policy.

As a business owner, it's important to understand the difference here. I recommend taking a read of Erie's post, which gets into greater detail on this topic. And, always feel free to give us a call with specific questions.

Full Link to Post:

Insurance Concept of the Week: Commercial Package Policy

Each week we will post and define an industry term or concept for our readers.

A commercial package policy is a business insurance policy that includes multiple coverage parts. It is beneficial for the insured because it minimizes gaps in coverage, and often it includes package discounts that lower the total premium for the customer. Examples of coverages usually included in a commercial package policy are: commercial property, general liability, and commercial automobile insurance.

Give us a call to find out more about our commercial offerings.