If you’ve ever had to deal with certificates of insurance you know that deciphering these documents can be a major headache. Although a certificate of insurance is typically only one page, the document contains a lot of information so it can be a real pain and even harder to understand.
Simply navigating through the document can get confusing with all the information that is listed on that document.
This video will act as a road map to help you locate where the additional insured language is indicated on the certificate of insurance so that you can make sure you are being covered.
In order to know if your company is listed as an “additional insured” with regards to a CGL policy, you need to know where to look.
On an ACORD CERTIFICATE OF LIABILITY INSURANCE there are two places where you may find the additional insured (AI) status. There is a slim column labeled “ADDL INSD” that may be checked off and/or you will find a more detailed listing of additional insured status in the DESCRIPTIONS OF OPERATIONS section near the bottom of the ACORD certificate. The language that you should look for may be similar to this:
(Your Company’s name), (the client), and (the Lender), are Additional Insureds with respect to the General Liability Policy as required by written contract.
Now that we know where to find this information, what does it actually mean for you and your company?
It means that if something goes wrong with one of your vendors or subcontractors on a job, and something breaks or someone gets hurt, you're going to be covered by their insurance too. When you are listed as an additional insured on your vendor’s COI you can fell at ease when working with these third-party companies because you know you are reducing the risk that your company is exposed to.
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