What Is A COI Certificate Holder and why is it important to be listed as one?

COI Management | November 19, 2021

Even if you regularly handle COIs (Certificates of Insurance) you may not be familiar with some of the terms, such as “COI certificate holder.”

There are many industries that use COIs as evidence of a Commercial Liability Policy (CGL) since requiring insurance coverage helps to protect against risks that can occur when working with contractor networks. Even if your organization outsources its COI management, it’s always beneficial to have a basic understanding of COIs. In this blog, we will discuss the definition of “COI certificate holder.”

What is a COI Certificate Holder?

A COI certificate holder is an individual who receives the COI from the insured entity. For example, if your organization requires that the vendors and contractors you work with hold sufficient insurance coverage, you would ask the contractors to provide you with a COI as evidence of that coverage.

Your contracted companies, who would be defined as the policyholders, would have their insurance provider issue a COI to your organization. At this point, your organization would become a certificate holder.

As a certificate holder, you do not have any rights to the policy, you simply have proof that your contractor is insured at the time that you receive the COI. It is still important to be listed as a certificate holder, however, so you have direct knowledge of the policy details and will be provided notification if the 

Will the COI Show My Organization as a COI Certificate Holder?

Yes, the COI should indicate that your organization is a certificate holder in the Certificate Holder section of the COI. This is typically located in the bottom left corner of the COI document.

Is a Certificate Holder also a Policyholder?

No. A COI certificate holder is not insured by the policy that is listed on the COI, and would not be able to make a claim against the policy. A policyholder is an individual or entity that is listed on the insurance policy, and they are the ones who would benefit directly from the coverage. A policyholder may also be called a “named insured.” There are more terms that you may encounter on a COI, and we discuss this information in-depth on our blog.

What’s the Best Way to Ensure Coverage?

When working with contractors and vendor networks, it’s critical that your organization requests a COI from every contractor that you engage. But what can you do if your organization works with hundreds or even thousands of contractors? At this point, managing the COIs from each of the contractors would be all but impossible for anyone. This is why PlusOne Solutions provides our clients with COI Management services.

Our proactive approach allows our clients to achieve higher levels of COI compliance while reducing risk and protecting their reputation. Our experienced processors have a deep understanding of COIs, and our automated solution ensures that certificates of insurance are processed in a timely and accurate manner.

For the last 16 years, PlusOne Solutions has been working to proactively reduce risk and liability for businesses that utilize vendor networks. Contact us today to discuss how COI management could benefit your organization.

Contents are provided for information purposes only and should not be construed as legal advice. Users are reminded to seek legal counsel with respect to their obligations and use of PlusOne Solutions services.

About PlusOne Solutions

PlusOne Solutions has been an industry leader in the risk management field by specializing in compliance programs that meet the complex challenges of geographically dispersed contractors, vendors, and employee networks. PlusOne Solutions protects companies from possible financial, legal, and reputational risks associated with contractor and vendor relationships while creating safer work environments. To learn more, visit https://www.PlusOneSolutions.net.