Additional insured and waiver of subrogation
4 min read · Last updated
Certificates of insurance often list terms such as additional insured, certificate holder and waiver of subrogation. Each one describes something different, and a certificate alone does not prove that any of them is in place. This guide explains the terms in plain language and what to check. General information, not legal or insurance advice; check your contracts and your insurer.
Certificate holder
The certificate holder is the party the certificate was issued to, usually the company that asked for proof of insurance. Being the certificate holder does not give you rights under the vendor's policy. It only means the certificate was addressed to you.
Additional insured
An additional insured is a party added to a vendor's policy so that it can receive some of that policy's coverage for claims arising from the vendor's work. The insurer adds this status by an endorsement to the policy. Contracts commonly require the owner or general contractor to be named this way.
The certificate may state that you are an additional insured, but the endorsement is what grants the status. Check these points:
- The named party, using its exact legal name
- The policies it applies to, such as general liability and, sometimes, umbrella or auto
- Whether the coverage is ongoing or limited to completed work, and for how long
- The endorsement form number, so the wording can be compared with the contract
Waiver of subrogation
Subrogation is an insurer's right to recover what it paid on a claim from the party that caused the loss. A waiver of subrogation means the insurer agrees to give up that recovery against a named party. Contracts ask for it so that losses are handled through insurance rather than through a dispute between the parties.
Like additional insured status, a waiver is set out in an endorsement. A certificate that mentions a waiver does not show that the waiver exists in the policy. Check these points:
- The party or parties the waiver protects
- The policies it applies to
- Whether the endorsement must be attached to the certificate or delivered separately
- Any conditions the contract places on the waiver
What a certificate does not prove
A certificate is a summary issued by the insurer's agent, often on a standard form. It can describe terms the policy does not contain, or leave out terms it does contain. The policy and its endorsements control the coverage. When an endorsement matters to the contract, request a copy from the insurer or the agent and compare it with the contract wording.
- The policy period shown covers the dates of the work
- The endorsement is attached to the policy, not only described on the certificate
- The endorsement covers the period and the policies the contract requires
A practical check
When a contract requires these terms, use a three-step check. First, read the requirement in the subcontract and note the party names, the policies and the wording. Second, request the endorsements and the declarations page for each policy. Third, compare them and record the result, with the date and the reviewer.
Ask your insurance broker or an attorney to review any wording that is unusual, or that the contract describes loosely.
Record the terms in your tracker
Record whether each vendor must provide additional insured and waiver of subrogation terms, and mark each one as received, checked on the endorsement, or missing. Store the endorsement with the certificate for the same vendor. VendorVault keeps each uploaded document against its requirement, so the endorsement and the certificate can be reviewed together.
Questions
Does wording on a certificate make me an additional insured?
Not by itself. The policy endorsement grants the status. Ask for the endorsement and check the named party.
Do I need both terms?
Only if the contract asks for them. Some contracts ask for one, both or neither.
Can a vendor simply write the wording on the certificate?
A certificate should not be used to add coverage. Coverage comes from the policy. If the certificate says something no endorsement supports, the contract requirement is not met.
Who can confirm the wording?
Your insurance broker, or an attorney who works on construction contracts in your state, can confirm the terms.
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