certificate holder

It means that they are notified if your insurance changes/cancels. If your insurance company charges to send certs find a new one.

 

Not an expert, but I've found most will want to be Certificate Holders....just advise your insurance, they send the Certificate showing the broker as they requested, and it's done - doesn't affect your rates or anything. It could matter how quickly your insurance company responds to the request though, if you're waiting on a load/rate confirmation and they need this before you can get the load. Just a service thing....hopefully they are responsive to your request.

 

most all require certificate holder, which is ok. some contracts will say additional insured rather than certificate holder, which you don't wanna miss that in the fine print and sign contract approving it.

 

Very good point and most insurance companies charge for this also!!!!

 

Additional Insured usually costs. That notifies whoever is an additional insured if you cancel coverage or modify limits of exposure.
Certificate holder DOES NOT get notification of cancellation. They are listed as a certificate holder which shows time and date and their info on the certificate authenticating your insurance limits and coverage at that point in time. According to my insurance company Certificate Holders are free.
I got all this info yesterday: as I've always had "additional insured" as a requirement and got someone that only wanted certificate holder yesterday; I called insurance company and happened to be reading the fine print while on the phone. Insurance rep explained all of what I just said at that point. I never knew: but you learn something new everyday.

 

I get listed as certificate holder and get notified of changes/cancelation. http://www.linkedin.com/groups/What-s-BIG-Deal-Additional-2167050.S.103621858

 

Well that's interesting. I had never heard of a difference: and I feel like listing someone as anything, then not letting them know if said policy is cancelled is somewhat of a poor business practice. Essentially if what the ins rep said is accurate: there is no follow up to keep all parties in the know.


im viewing & responding from my phone: I don't have a linkedin acct so I'm not sure what info/insight the provided link gives :/

 

If a broker/shipper is listed as additional insured then your insurance must defend them in an action.

 

HUGE. The “Certificate Holder” is going to receive notification of changes or cancellation in coverage.

However, “Additionally Insured Endorsement” provides the party with your insurance coverage and the rights to your defense under such coverage.

So if you are the motor carrier and XYZ is the Shipper or Broker who provided you the freight and you have a contract with XYZ Company and have provided XYZ Company with “Additionally Insured Endorsement”. During the course of operations there is an accident which results in both you and the shipper being sued for liability in the accident. XYZ Company will be able to stand upon your insurance because you named them as additionally insured under your policy.

However if you had only provided XYZ company “Certificate Holder” status they would not be able to benefit from your coverage or defense. They would have to pay for their own attorneys to defend and would have to depend on their Contingent Insurance.

Keep in mind that just because you do not provide “Additionally Insured Endorsement” status does not mean that you may not be legally responsible for paying for XYZ’s reasonable attorney fees if the liability was found to be yours. Typically the transportation agreement outlines the Indemnification requirements for both parties.

If you are a BROKER or SHIPPER - With respect to additional insured status, you need to be sure to secure a copy of the endorsement to the AL policy proving that the carrier/carrier’s insurance broker has in fact added YOU to the AL coverage via an endorsement.
I have seen several instances lately with brokers and shippers where they have received a Certificate of Insurance denoting their additional insured status only to learn later that no endorsement was actually added to the AL policy – rendering the Certificate worthless (other than a potential E&O claim against the carrier’s insurer). This is an extra step, but one the carrier should be able to complete just as easily as securing a copy of the Certificate.

If you are the CARRIER – then try to not provide “Additionally Insured Endorsement Status to anyone. Keep in mind, most insurance companies charge to provide this endorsement. And you need to make sure that the Transportation Agreement is properly prepared. The larger and more reputable Brokers and Shippers will not entertain only being a “Certificate Holder”, They will want and demand to be “Additionally Insured”.