Certificates of insurance are one of the most misunderstood documents in business. People treat them as proof of protection. They are closer to a receipt: evidence that a policy existed on the day the certificate was printed, and almost nothing more.
What a certificate is
A certificate of insurance summarizes someone’s policy: the carrier, the coverage types, the limits, and the dates. It is issued as a courtesy to show that coverage was in place at that moment. That is genuinely useful information, but it has hard limits.
What a certificate is not
A certificate is not a contract, and it grants the holder no coverage. The policy can be cancelled or changed the day after the certificate is issued, and the certificate will not tell you. Most importantly, receiving a certificate does not make you an additional insured. Being listed as the certificate holder simply means you got the document.
Where real protection comes from
When a contract requires you to be covered under another party’s policy, that protection comes from an additional insured endorsement added to their policy, not from the certificate. The endorsement is what extends their coverage to you for claims arising from their work. The certificate may mention it, but the endorsement is the thing that does the work. Always confirm the endorsement exists, ideally by getting a copy.
How to handle it well
If you require insurance from vendors, subcontractors, or tenants, do three things: state your requirements clearly in the contract, collect the certificate, and verify the additional insured endorsement behind it. The same applies in reverse when others require coverage from you. A coverage review checks that your certificates and endorsements actually deliver what your contracts promise.