Business insurance insights
Certificate Holder vs. Additional Insured
Being named on a certificate gives you information; being an additional insured gives you policy rights by endorsement. Compare the two, read each ACORD 25 field and check blanket versus scheduled wording.
A certificate holder is the person or business that receives a certificate of insurance, a summary of someone else's coverage. An additional insured is a person or business the policy itself covers, through policy wording or an endorsement. Being the certificate holder gives you information, not coverage. The standard ACORD 25 certificate says it "confers no rights upon the certificate holder" and that an additional insured needs a policy with "ADDITIONAL INSURED provisions" or an endorsement (ACORD 25, 2025/12 edition, as filed with the Texas Department of Insurance).
Texas and New York put the same rule in statute. A Texas certificate "shall not confer to a certificate holder new or additional rights beyond what the referenced policy or any executed endorsement of insurance provides" (Texas Insurance Code §1811.153). In New York, a certificate "shall further not confer to any person any rights beyond those expressly provided by the policy" (New York Insurance Law §502).
This is the starting page for our certificate articles:
- Can a Texas COI promise 30 days' cancellation notice? explains why certificates say notice follows the policy.
- Texas COIs and blanket additional insured endorsements covers what a Texas certificate may say when the policy has only a blanket endorsement.
- Client rejected your COI? lists the details to check with the issuer.
- Collecting subcontractor COIs sets up tracking for the business receiving certificates.
- Your COI expires mid-project plans the renewal handoff.
Before you call the issuer, list the insurance terms in your contract with the COI & Contract Insurance Checklist.
Certificate holder vs. additional insured: the rights compared
| Question | Certificate holder | Additional insured |
|---|---|---|
| What creates the status? | Being named on a certificate. Texas defines a certificate holder as a person "designated on a certificate of insurance as a certificate holder" or to whom one was issued at the policyholder's request (§1811.001). | Policy provisions or an endorsement to the policy, as the ACORD 25 "IMPORTANT" box states. |
| Does it change the policy? | No. The certificate "does not affirmatively or negatively amend, extend or alter the coverage" (ACORD 25). Texas §1811.152 and New York §502(c) say the same. | The endorsement is part of the policy. Its wording sets who qualifies and for which work, premises or products. |
| Can it claim under the policy? | Not because of the certificate. The certificate confers no rights (ACORD 25; Texas §1811.153). | Only within the endorsement's terms: who qualifies, which operations, whether completed work is included, and any written-contract condition. |
| Notice if the policy is cancelled | Only if the policy or an endorsement provides it. In Texas, a person has a right to notice only if named in the policy or an endorsement and the policy, endorsement or a Texas law requires notice (§1811.155). | The same Texas test applies. Being named is half of it; the policy, endorsement or a law must also require notice. |
| Waiver of subrogation, primary and noncontributory | Not created by the certificate. ACORD 25: "A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s)." | Set by separate endorsements or policy wording. ISO's program, for example, has a Primary And Noncontributory endorsement for additional insureds "subject to certain conditions." |
| How to verify | Compare the certificate with the policy. TDI notes that Texas law does not stop an agent or insurer from providing a copy of the policy or endorsements. | Ask for the endorsement itself, with its form number and edition date. |
Sources for the table: ACORD 25 (2025/12), Texas Insurance Code Chapter 1811, TDI's certificate FAQ and ISO's Businessowners Policy program overview (dated February 11, 2025).
How to read an ACORD 25 certificate, field by field
ACORD 25 is the "Certificate of Liability Insurance" published by ACORD Corporation. Texas law names ACORD (the Association for Cooperative Operations Research and Development), AAIS and ISO as publishers of standard certificate forms, which it treats as approved when filed (§1811.103). TDI's list of approved certificates shows ACORD 25 (2016/03), approved May 14, 2015, and an ACORD Corporation ACORD 25 filing approved October 10, 2025. The fields below are from the 2025/12 edition.
| Field | What it tells you | What to check |
|---|---|---|
| Date | When the certificate was issued | It is a snapshot. Both editions warn that limits shown "may have been reduced by paid claims." |
| Producer and contact | The agent or broker who issued it | Confirm the issuer using contact details you find independently. |
| Insured | The business the policies cover | Match the exact legal name in your contract. |
| Insurers affording coverage (A to F) and NAIC number | Each insurer, with its company code | Look each insurer up with the state insurance regulator. The "INSR LTR" column links each policy row to these letters. |
| Certificate and revision number | Which version you hold | Keep superseded versions with your records. |
| Type of insurance, policy number, effective and expiration dates | One row per policy: commercial general liability, automobile liability, umbrella or excess liability, and workers' compensation with employers' liability | Check that the dates cover your work. For general liability and umbrella, note whether "occur" or "claims-made" is marked. |
| ADDL INSD | A yes or no flag for additional insured status | The flag is not the endorsement. In Texas, TDI says to check it only if an endorsement names the certificate holder. |
| SUBR WVD | A yes or no flag for a waiver of subrogation | The form says certain policies may require an endorsement. TDI says to check the box if a waiver endorsement names the holder. |
| Limits | General liability: each occurrence, damage to rented premises, medical expense, personal and advertising injury, general aggregate, products and completed operations aggregate, and whether the aggregate applies per policy, project or location. Auto: combined single limit or split limits, with boxes for any auto, owned, scheduled, hired and non-owned autos. Umbrella: each occurrence, aggregate and retention. Workers' compensation: "per statute" and employers' liability limits. | Compare each figure with the contract. The 2025/12 edition adds that limits shown "are inclusive of amounts requested by the certificate holder and may not reflect policy limit amounts in excess of those requested," so a lower figure may reflect your request rather than the policy. In the 2025/12 edition, the "may have been reduced by paid claims" warning carries an asterisk whose note reads "Not Applicable in WY." |
| Owner excluded from workers' compensation (Y/N) | Whether a proprietor, partner, executive officer or member is excluded | If yes, the form asks for details in the description box. |
| Description of operations, locations, vehicles | Free-text remarks, with the ACORD 101 schedule for more space | In Texas, this box may not refer to another contract's insurance requirements (§1811.154). A job number for identification only is allowed. |
| Certificate holder | Your name and address | This is where you appear. It gives no policy rights by itself. |
| Cancellation | "Should any of the above described policies be cancelled before the expiration date thereof, notice will be delivered in accordance with the policy provisions." | Any advance notice to you has to come from the policy or an endorsement. Our 30-day notice article explains how to check. |
| Authorized representative | The issuer's signature | In Texas, the agent must hold an appointment with the insurer or managing general agent that issues the policy (TDI FAQ). |
For coverage terms such as "occurrence" and "aggregate," see the general liability coverage page and the guide to reading business insurance policies.
Blanket vs. scheduled additional insured endorsements
There are two ways an endorsement identifies an additional insured. A scheduled endorsement lists the person or organization by name. A blanket endorsement, which ISO's titles call "automatic status," covers anyone who meets a stated condition, such as a written contract that requires the coverage.
ISO's BOP program overview lists both types. Scheduled titles include "Additional Insured – Designated Person Or Organization" and "Additional Insured – Owners, Lessees Or Contractors – Scheduled Person Or Organization." Blanket titles include "Additional Insured – Automatic Status When Required In Written Contract Or Agreement" and versions for written construction agreements. Separate titles address completed operations, vendors, lessors of leased equipment and managers or lessors of premises (ISO overview). Other insurers and policy types use their own forms, so read the endorsement you are given.
| Point to check | Scheduled endorsement | Blanket endorsement |
|---|---|---|
| How you qualify | Your name appears in the endorsement's schedule | You meet the condition in the endorsement, such as a written contract |
| What to read | The schedule and the scope wording | The condition: written contract or agreement, signed by whom and when, and whether it must be "with you" or can cover "other parties" up the contract chain (ISO has both versions) |
| Completed work | Whether completed operations are included or need a separate form | The same question |
| What a Texas certificate may say | It may name you as an additional insured | It may say a blanket endorsement exists, but may not name you as an additional insured (TDI FAQ) |
| What to keep | The endorsement page with your name | The endorsement plus the signed contract that meets its condition |
Build a reconciliation log
Use one row for each requested term. Keep the certificate, the policy wording and the agreement together.
| Requested item | Agreement wording | Certificate says | Policy or endorsement evidence | Open question |
|---|---|---|---|---|
| Business and customer names | Exact entities requested | Names shown | Insured and additional insured wording | Are these the intended entities? |
| Coverage type and limit | Requested coverage and limit | Coverage and limit shown | Applicable policy provision | Does the coverage match? |
| Additional insured status | Party, work and requested scope | ADDL INSD flag and remarks | Endorsement form number and edition | Scheduled or blanket? Ongoing and completed work? |
| Waiver and primary wording | Exact contract wording | SUBR WVD flag and remarks | Endorsements | Which endorsement grants each? |
| Effective period | Job dates or continuing obligation | Policy dates | Applicable dates and conditions | What happens at renewal or completion? |
Leave a cell marked "unconfirmed" until you have the document. Do not fix a mismatch by editing a certificate yourself. In Texas, a person may not require a certificate that contains false or misleading information about the policy (§1811.054), and TDI lists civil penalties of up to $1,000 for each infraction of Chapter 1811 (TDI FAQ).
Work through a common mismatch
Here is a hypothetical example. A maintenance contractor's customer asks for additional insured status. The certificate lists the customer as holder and marks ADDL INSD, and the agent says the policy has a blanket endorsement.
The contractor asks for the endorsement and reads its condition. If it requires a written contract and the customer agreement is still unsigned, the contractor raises that before work starts. The customer may need to clarify its request, and a lawyer may need to interpret the contract. A new certificate with stronger wording does not fix missing policy protection.
If you are unsure who issued a document, verify the agent or insurer through the state regulator. In Texas, TDI's license lookups check agents, agencies and companies. A license lookup confirms a license, not a particular certificate.
Next steps
If the contract also asks for umbrella limits, read the commercial umbrella coverage page. If you want PolicyBenchmark to follow up about the coverage behind a certificate request, request coverage help.
Sources checked October 3, 2026. The Texas and New York rules apply to certificates within those states' laws; for another state, ask that state's insurance department.
About this article
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- PolicyBenchmark Editorial Team
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This content is for informational purposes only and does not constitute insurance advice. Always consult with a licensed insurance professional before making coverage decisions.