When navigating the complex world of risk management and insurance policies, do you understand the differences between certificates of insurance and additional insured statuses? Have you ever wondered why certain coverages are required or how they protect your business?
What is a Certificate of Insurance (COI)?
A certificate of insurance does not grant coverage. Its purpose is to explain which liability coverages businesses have in force. It articulates the type and limits of coverage you have, which insurance company you are working with, your policy numbers, and the effective dates of your policy. Should an accident occur, it makes it easy to identify who to file a claim with.
Common COI limits businesses and individuals ask for are:
□ Commercial GL
o “A-“ Rating or better with AMBest
o $1M per occurrence/$2M aggregate limits
o Additional Insured Requirements
CG 2010 or equivalent for Ongoing Operations
CG 2037 or equivalent for Completed Operations
o Primary and Noncontributory provision
o Waiver of Subrogation required
□ Commercial Auto Liability
o “A-“ Rating or better with AMBest
o Hired/Non-owned Auto Required
o Additional Insured Endorsement Applies
□ Workers Compensation & Employers Liability
o Coverage A (Workers Compensation)
o Coverage B (Employers Liability) with $500k/$500k/$500k limit
o Waiver of Subrogation required
□ Excess Liability
o $1M limit
o Subcontractor’s insurance is Primary and Noncontributory
□ Other
o 30-day Notice of Cancelation
What is an Additional Insured?
Additional insureds are entities or individuals added to a business owner’s policy to extend coverage and legal defense. Additional insureds can be scheduled onto a policy or included by blanket endorsements.
Some common relationships that request additional insured status are:
· Landlord/Tenant
· Client/Vendor
· General Contractor/Subcontractor
General Additional Insured Endorsements
|
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Designated Person or Organization |
Automatic Status |
|
Generic |
CG 20 26 (04/13 edition) |
not available |
|
Lessors of Leased Equipment |
CG 20 28 (04/13 edition) |
CG 20 34 (04/13 edition) |
|
Managers or Lessors of Premises |
CG 20 11 (04/13 edition) |
not available |
|
Co-Owners of Premises |
CG 20 27 (04/13 edition) |
not available |
|
Lessor of Leased Properties |
CG 20 24 (04/13 edition) |
not available |
|
Note: each insurance carrier has separate fee structures to add these forms. |
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Common Additional Insured Forms for Contractors
If you have questions about COIs or Additional Insured requirements, we would love to simplify the insurance process for you. You can forward vendor packets and COI requests to our office and we can bring you into compliance. If you have questions or want additional information, please contact me at justin@wilsoninsuranceaz or 480-964-2400.
Justin Chappell
VP Business Development
Wilson Insurance
When it comes to understanding the guts of a policy, no one understands the nuances of insurance coverage better than an underwriter. Fortunately for Wilson Insurance customers, Justin was a senior underwriter for many years! We understand that insurance jargon can be confusing. That is why we are always trying to simplify it for our customers. Our goal is to build your insurance confidence so you are empowered to lead your organization to operational success.
