Additional insured on a certificate of insurance: what it proves, and what it doesn't

The certificate says "Y". Are you covered?

A subcontractor sends over its certificate of insurance. In the additional insured column next to general liability, someone has typed "Y". Your name is in the certificate holder box. It looks done.

It might be. But the certificate itself can't tell you. Most general contractors learn that the hard way, after a claim, when the subcontractor's insurer asks a simple question: where is the endorsement that makes you an additional insured?

This guide explains what a certificate does and doesn't prove about additional insured status, which documents actually create it, and what to ask your subcontractors for.

What the certificate proves, and what it doesn't

The standard certificate of insurance says so itself, in its own fine print: it is issued for information only, it gives the certificate holder no rights, and it does not change the coverage of the policies it lists. It also says that if the holder is an additional insured, the policy has to include additional insured provisions or be endorsed.

In other words, the certificate is a summary written by the subcontractor's agent or broker. It tells you what they believe the policy contains. The policy, and the endorsements attached to it, are what an insurer reads when a claim comes in.

A "Y" in the additional insured column means someone believes an additional insured endorsement exists. It doesn't show:

• whether that endorsement names you, or covers anyone required by written contract;
• whether it covers ongoing work, completed work, or both;
• whether it is limited to what your contract requires;
• whether it applies on a primary basis or only after your own insurance pays.

The endorsements that actually do the work

On a commercial general liability policy, additional insured status for construction usually comes from standard forms like these:

Two details matter more than most people expect.

Ongoing versus completed. Many construction claims arrive after the job is finished: a roof leaks, a wall cracks, someone is hurt months later. Ongoing-operations wording alone may not respond. If your contract requires completed operations coverage, look for completed operations wording (such as CG 20 37) and for how long it must stay in place.

Edition dates. Newer editions of these forms generally limit the additional insured coverage to what your written contract requires, and only to the extent the law allows. So the coverage you get depends on your contract's own wording, not only on the endorsement.

What to ask your subcontractors for

When your subcontract requires additional insured status, a certificate is the starting point, not the proof. A short checklist:

1. The endorsement pages themselves. Ask the subcontractor's broker for the additional insured endorsements attached to the general liability policy, and to the auto and umbrella policies if your contract requires them there too.
2. Your exact legal name, or blanket wording. A scheduled endorsement should name your legal entity exactly as it appears in the contract. A blanket endorsement should apply to anyone the insured agreed to add "in a written contract", and the contract has to be signed before the work starts.
3. Ongoing and completed operations. Check that both are covered if your contract requires both, and for how long completed operations coverage must continue after the job ends.
4. Primary and non-contributory, if required. That is a separate requirement. It decides whose policy pays first, and it usually needs its own wording.
5. The umbrella. If your contract requires umbrella or excess coverage for you, check that the umbrella extends to additional insureds on the underlying policy.
6. Dates. Policies renew. Ask for the renewed certificate and endorsements before the current policy expires, not after.

A note for Texas contractors

Texas limits how far additional insured coverage can reach in construction contracts (Texas Insurance Code, Chapter 151). In general, a requirement that a subcontractor's insurance cover you for your own negligence is not enforceable, with some exceptions, such as certain claims by the subcontractor's own employees and some wrap-up programs. Your attorney and your broker can tell you how this applies to your contracts. The practical point: in Texas, the wording of your contract and the endorsement matters even more.

Where Certgio fits

Certgio compares a certificate with the requirements in your contract and shows, in plain English, what matches and what doesn't. The free check compares general liability, auto, workers' comp and umbrella limits, whether the additional insured you require is named on the certificate, and expiration dates.

It can't prove an endorsement exists, because a certificate can't. When your requirements call for an endorsement, Certgio tells you to ask for the endorsement page, and helps you send that request to the subcontractor's broker.

Check a certificate against your requirements, free, no account needed

This guide is general information about how certificates of insurance and additional insured endorsements usually work in the United States. It is not legal or insurance advice. Policy wording, contracts and state law vary: confirm the details with your broker and your attorney.