Certificate of insurance and additional insured

What a certificate shows

• the named insured: the company the policies cover
• the insurers, policy numbers and policy dates
• each line of coverage and its limits, such as general liability, auto, workers' compensation and employer's liability, and umbrella or excess
• a description box that may mention the project, additional insured status or waiver of subrogation
• the certificate holder: the party that asked for the certificate

Certificate holder is not additional insured

The certificate holder is just the party that received the certificate. Being the holder gives no rights under the policy.

An additional insured is a party added to someone else's policy, usually a sub's commercial general liability (CGL) policy, so that it is covered for claims arising out of that sub's work. Additional insured status comes from an endorsement to the policy, either one naming the party or a blanket endorsement covering anyone the insured has agreed in a written contract to add. A line on the certificate saying "additional insured" is only a description of what the policy is said to contain. Ask for the endorsement itself when the contract requires it.

Endorsements come in two main kinds:

• Ongoing operations: covers claims while the sub's work is under way.
• Completed operations: covers claims that arise after the sub's work is finished, such as a collapse months after occupancy. Many contracts require this for a set period after completion.

Other terms that come with it

• Primary and noncontributory: the sub's policy pays first for the additional insured, without asking the general contractor's own policy to share.
• Waiver of subrogation: the insurer agrees not to sue the other party to recover what it paid. Usually also by endorsement.
• Notice of cancellation: many certificates say the insurer will try to notify the holder of cancellation, without promising to. Track expiry dates yourself.

How far these terms and the related indemnity clauses can go is limited by state law in some places, so read the contract and the law for the job. See general liability vs builder's risk vs workers' comp for what each line covers.

Checking a sub's certificate, with invented numbers

The subcontract requires CGL of $1,000,000 per occurrence and $2,000,000 aggregate, an umbrella of $5,000,000, and additional insured status for the general contractor on both ongoing and completed operations. The sub's certificate shows:

• CGL $1,000,000 per occurrence, $2,000,000 aggregate: meets it
• Umbrella $3,000,000: short by 5,000,000 - 3,000,000 = $2,000,000
• CGL policy ends 30 June; the sub's work runs to 15 August: expires mid-job
• "Additional insured" typed in the description box, no endorsement attached: ask for the endorsement

How the limits stack. Assume the umbrella sits over the CGL and follows its terms, and the claim is within both.

• A claim of $1,750,000: CGL pays 1,000,000, umbrella pays 1,750,000 - 1,000,000 = 750,000. Uncovered: $0.
• A claim of $4,600,000 with the sub's $3,000,000 umbrella: 1,000,000 + 3,000,000 = 4,000,000 paid. Uncovered: 4,600,000 - 4,000,000 = $600,000.
• The same claim with the required $5,000,000 umbrella: 1,000,000 + 5,000,000 = 6,000,000 available, so the whole $4,600,000 is covered.

Check: 4,000,000 + 600,000 = 4,600,000. The $600,000 gap would fall on the sub, and possibly the general contractor, which is why the shortfall gets fixed before the sub mobilizes. Real policies have exclusions and conditions that this simple stack leaves out.

A tracking routine

1. Send each sub the insurance requirements with the bid package, not at contract signing.
2. Check every certificate against the requirements, line by line, before the sub starts.
3. Get the additional insured and waiver endorsements, not just the certificate.
4. Log every expiry date and request renewals a month ahead.
5. Hold payment, as the subcontract allows, when coverage lapses.

Common mix-ups

• Treating the certificate as coverage. It is evidence only. The policy and its endorsements decide.
• Holder versus additional insured. Holding a certificate adds no coverage.
• Forgetting completed operations. Many claims come after the work is done.
• Checking once. Policies expire during long jobs.

On the NASCLA exam

The bulletin lists subject areas, not topics. We place insurance and risk under Procurement and Contracting Requirements, 31 of the 115 scored questions. The NASCLA Contractors Guide to Business, Law and Project Management fits by its title, so tab its insurance and risk management topic.

Practice it

Read general liability vs builder's risk vs workers' comp for the policies behind the certificate, and notice to proceed and contract time for why owners want certificates before work starts.

Take the free 10-question check

Start the free 10-question check. It is weighted to the twelve NASCLA subject areas, needs no signup and explains every answer, so you see which area to study first.

The NASCLA Commercial course has a lesson for each of the 12 subject areas that shows which listed reference to open and how to apply it, original practice questions with every answer worked, and four timed practice exams of 115 questions on a 330-minute clock. Your scores come back by subject area, so you know where the next study hour goes. See the course.

Not affiliated with or endorsed by NASCLA or PSI. NASCLA and PSI are named only to identify the exam and its test vendor.

Sources

Show the list

• PSI Candidate Information Bulletin 1458, content outline and reference list, updated 7 Jul 2026. Retrieved 5 Nov 2026.
• NASCLA Commercial Exam, NASCLA. Retrieved 5 Nov 2026.
• All examples use invented numbers and a simplified stack. Real coverage depends on each policy's terms and state law.