A Certificate of Insurance Proves Coverage. Additional Insured Status Extends It.
A certificate of insurance (COI) is a document that proves you carry coverage. Being named as an additional insured on someone’s policy actually extends protection to them. Manufacturers get asked for both constantly by customers, vendors, and landlords, and getting them wrong can put a contract at risk.
The Difference That Trips People Up
- Certificate of insurance: evidence that your policy exists, with its limits and dates. It does not change your coverage.
- Additional insured: a party added to your policy so they’re protected for claims arising from your work. This does change who your policy protects.
A customer asking to be “added as additional insured” is asking for more than a certificate. Confusing the two can mean you’re out of compliance without realizing it.
Why Customers Require These
Larger buyers and general contractors often require, before they’ll do business with you:
- A certificate showing specific minimum limits
- Additional insured status on your liability policy
- Sometimes a waiver of subrogation or primary and non-contributory wording
These requirements live in your contracts, and your insurance has to match them.
Where Manufacturers Get Caught
- Limits in the contract are higher than what you carry
- The contract requires additional insured status the policy doesn’t grant
- Required endorsements are missing
- Certificates requested faster than they can be issued, stalling a deal
The Real Risk
If your coverage doesn’t match your contract’s insurance requirements, you can be in breach of that contract, and exposed if a claim hits. This is one of the most common and avoidable problems manufacturers run into. If large claims are a concern, see how umbrella and excess liability can extend your limits above standard policies.
For a full overview of what manufacturers need, see what insurance does a manufacturer need in Utah.
Need to Match Your Coverage to Your Contracts?
If customers are sending insurance requirements you’re not sure you meet, that’s exactly the kind of thing worth checking before you sign.