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Certificate of Insurance
What is it and how do you read it?
What is a Certificate of Insurance?
A Certificate of Insurance is simply PROOF that insurance coverage exists.
Certificate of Insurance ‐ a form issued by the company to the insured or other
interested parties attesting to the fact that coverage is in force. Certificates cannot be
used to alter coverage and generally contain disclaimers stating that certificate holders are
not granted any rights under the policy, and the company has no duty to notify them of
Requesting a Certificate of Insurance is a normal part of the process when the College
signs contracts and agreements, hires contractual or professional services, allows
businesses to rent or use county property, permits the consumption of alcohol on
county property, etc.
For the purposes of this document all of the 3rd parties the College might request a Certificate of
Insurance from shall be called “the vendor” even though this could be an individual or a
company or a contractor or a not‐for‐profit, etc.
Simply put, the certificate serves as proof from the vendor’s insurance company that the
types of insurance the college requires are in place at the specified limits.
Some examples of insurance the college may require are general liability, property,
professional liability, workers compensation, auto, host liquor, etc.
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What does it mean to be “Named as Additional Insured”?
Being named as additional insured provides insurance coverage under the vendor’s
Additional Insured ‐ a person other than the named insured who is protected under an
insurance contract (in this case, the College).
The purpose of being named as additional insured is to:
1) reinforce the contractual transfer of risk away from the College back to the
vendor providing the goods or service
2) obtain third party rights to policy defense in the event of a lawsuit
3) thwart subrogation attempts by the vendor’s insurance company fo