A certificate of insurance has many labels you may need to become more familiar with if you hire vendors and request COIs. In this blog, we will talk about the  “certificate holder” and the best way to tackle it for COI management purposes.

What is a Certificate Holder?

A certificate holder on an ACORD 25 form is the business or person listed on an insurance certificate who is being provided insurance. They are notified if the insurance policy is canceled or changed. 

If you request COIs, you are most likely listed as a certificate holder, but this can also apply to other businesses or persons listed in the contract. Commonly, this can be the General Contractor, Owner, or Lender(s) in construction contracts. 

Where is a Certificate Holder listed?

A COI’s Certificate Holder typically appears in the designated Certificate Holder box at the bottom left of the certificate of insurance (Acord25); see the image below.  

You can learn more about certificates of insurance in this free guide: How to read a COI.

Should you be listed as a certificate holder?

Certificate Holders are standard on your vendor’s certificate of insurance. It is important to know that just being listed as a certificate holder does not mean you are not entitled to any insurance coverage listed on your vendor’s insurance in the event of a legal claim. 

The Acord 25 form states that “The certificate is issued as a matter of information only and confers no rights upon the certificate holder”

Expedite Compliance with Billy

Certificate holders have the right to be notified in writing if the vendor cancels the policy. In reality, the vendor insurance broker would need to know the certificate holders and notify them by mail/email of the cancelation notices on all projects affected. 

By adopting compliance management software such as Billy, you can adopt a solution that scales with your volume of projects and vendors and integrates with popular project management systems such as Procore & Autodesk to standardize contract compliance and reduce business friction between your vendors and their brokers. 

You can direct Billy to receive physical notices of cancellation from insurers in the mail to a P.O. Box controlled by Billy. Our team will scan them into digital format and then email them to whomever you have been notified of cancellations. 

Benefits of being listed as a Certificate Holder in Billy

  • Simplifies the annual insurance auditing process for all vendors
  • Reduces the stream of physical mail that your accounting/compliance teams will receive
  • Billy has a PO box where we receive the mail, digitize it, and upload it to the platform. 
  • Billy can forward notices of cancellation digitally. 

Conclusion

A certificate of insurance has many labels you may need to become more familiar with if you hire vendors and request COIs. In this blog, we will talk about the  “certificate holder” and the best way to tackle it for COI management purposes.

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