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Shipper TMS - Certificate Holder vs Additional Insured
Shipper TMS - Certificate Holder vs Additional Insured

Learn the difference between being added on an insurance policy as a certificate holder versus an additional insured.

Updated over a week ago

When it comes to an insurance policy, things can sometimes be a bit confusing. Have no fear! Here we will go over the difference between Certificate Holders and Additional Insured. Soon you will be an expert too, or at least a little less confused!

Let's say you are a shipper looking to work with a carrier to get some of your inventory moved. You get the carrier's paperwork, and review their insurance certificate to confirm they have adequate coverage. Once you are finished reviewing this document, you can request that the carrier's insurance company adds you as a Certificate Holder. This serves as proof that you reviewed the policy and confirm that the carrier is indeed insured at that point in time. You will not be notified of any future changes or cancellations to that policy, so it is important to routinely review that carrier's policy if you plan to work with them regularly.

Now that you have a carrier with the right insurance, you may decide that you would like to also be included in their coverage in case there is ever a need to file claims in the future. For a fee, you can request to be added as an Additional Insured to the carrier's insurance policy, which will extend coverage to you as well. As a result, you will be notified of any changes to the carrier's insurance policy, such as cancellations. Please note, this coverage would only extend to you in instances involving that specific carrier.

To summarize, Certificate Holder serves as proof that the carrier informed you they are insured and Additional Insured extends coverage to you through the carrier's policy. There is no charge to be a Certificate Holder, while there is typically a fee to be added as Additional Insured.

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