Vendor requirement terms

ACORD 25

The standard industry form used to prove liability insurance to a customer — the certificate itself, which evidences coverage but does not change the policy.

Also: Certificate of Liability Insurance · ACORD 25 form

Additional Insured

A party added to your policy who is covered for claims arising out of your operations—not their own independent acts.

Also: AI Endorsement · Additional Named Insured (different)

As Required by Written Contract

A policy or endorsement clause that activates coverage obligations only when required by a signed contract.

Also: Per Contract · Per Written Contract · Blanket Additional Insured

Certificate Holder

The party named on a COI as the recipient of proof of insurance.

Certificate of Insurance (COI)

A document that summarizes active coverage and limits. It does not change policy terms.

Also: Cert of Insurance · Insurance Certificate · Acord 25 · Certificate of Liability Insurance

Endorsement vs COI

A COI proves coverage exists; an endorsement actually changes your policy.

Flow-Down Clauses

Contract terms a prime contractor passes down into its subcontracts so the subcontractor is bound by the same obligations the prime owes the government.

Also: flowdown clauses · flow-down provisions

Hold Harmless Agreement

A contract clause in which one party agrees not to hold the other responsible for certain losses, and often to cover those losses if they occur.

Also: hold harmless clause · indemnification agreement · hold harmless meaning

Indemnification

A contract promise by one party to cover the losses, damages, or legal costs of another party.

Also: Indemnification clause · Hold harmless · Indemnify

Licensed & Insured

A shorthand phrase indicating a business holds the required government licenses and active insurance coverage to operate legally and protect clients.

Also: bonded and insured · licensed bonded and insured · what does bonded and insured mean

Loss Payee

A third party named on a property insurance policy who receives claim payments directly when insured property is damaged or destroyed.

Also: loss payee meaning · what is a loss payee

Notice of Cancellation

A contract requirement that your insurer give advance warning before cancelling coverage. A standard certificate of insurance does not guarantee it; you need a specific endorsement.

Primary & Noncontributory

A clause requiring your policy to pay first, without seeking contribution from the other party's insurance.

Also: P&NC · Primary Non-Contributory

Proof of Insurance

Documentation that shows a business actually holds the insurance coverage it claims to have.

Also: Evidence of insurance · Insurance proof · COI

Vendors Coverage

An endorsement that extends a manufacturer's or distributor's liability policy to cover its resellers and distributors for claims arising out of the named insured's products.

Also: what is vendors coverage · vendors endorsement · vendors additional insured

Waiver of Subrogation

An endorsement where your insurer gives up the right to recover claim costs from a third party.

Also: Subrogation Waiver · WOS