If you have ever booked a gig or signed a contract, you've probably seen terms like "additional insured," "certificate holder," or "hold harmless agreement." They often show up together, but they are not the same. Let's break it down!
What is an additional insured and/or certificate holder?
Both an additional insured and a certificate holder relate to your insurance, and are included on a certificate of additional insured (COI). Typically, the certificate holder and additional insured are the same entity, but not always. In some cases, there may be additional parties listed as additional insureds, or where only a certificate holder is required (no additional insured).
So, what's the difference?
An additional insured is a third party (like an event, venue, or entity) that is added to your insurance policy. This means if something arises from your operations, that third party can file a claim on your policy.
A certificate holder is also a third party (like an event, venue, or entity) that is added to your insurance policy. However, they are not protected by your policy and cannot file a claim. Instead, they are notified of any changes to your policy, such as expiration, renewal, or cancellation, during the event dates listed on your certificate.
What is a hold harmless agreement?
A hold harmless agreement (or indemnification agreement) is not related to your insurance. Instead, it is a contractual agreement. Usually, this means you agree to take responsibility for certain risks, protect the other party from legal liability, and clearly define who is responsible if something goes wrong.
Why do you often see them together?
Many events, venues, and/or entities will require both because they serve different purposes. A hold harmless agreement establishes who is responsible, while an additional insured certificate ensures there is insurance backing that responsibility. One without the other leaves gaps. Together, they make sure the third party is protected both contractually and financially.
In closing
When reviewing contracts, it's important to understand what's being asked of you. At SIA, we're here to help make that process easier to understand. If you need to request an additional insured certificate, please check out our how-to blog here for step-by-step guidance! If you have any questions about something in your contract, please reach out to our office via phone (715-246-8908) or via email (info@specialtyinsuranceagency.com).
