The party named on a COI as the recipient of proof of insurance.
The certificate holder is the entity (usually a vendor or client) that receives your COI. Being listed as a certificate holder typically means they will receive notice of policy cancellation (when that provision is requested on the COI), but it does not grant them coverage under your policy.
No. A certificate holder simply receives proof that you have insurance. An additional insured is actually added to your policy via endorsement and receives coverage for claims arising from your operations. Certificate holder status provides no coverage.
You don't add a certificate holder to the policy itself—you request that your broker issue a COI naming that party as the certificate holder. Provide the client's exact legal name and address, and the broker generates the certificate, usually the same day. If the client also needs coverage (not just proof), they must be added as an additional insured via endorsement, which is a separate step.
Only if the policy includes a notice-of-cancellation provision covering certificate holders. A standard COI alone does not guarantee notice—current ACORD 25 forms state notice "will be delivered in accordance with the policy provisions." To guarantee a certificate holder receives cancellation notice, a specific endorsement must be added to the policy.
Definitions are educational and may be modified by your specific policy language, endorsements, and state rules. For regulatory guidance, refer to the California Department of Insurance or the NAIC.
Last updated: July 2026.