certificate holder

caftransport · Jan 30, 2014

wichris said: ↑

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 XYZs 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/carriers 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 carriers 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.
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Interesting, I don't quite like the idea of providing insurance for someone elses benefit. If they want insurance they can get their own policy.

alaga · Feb 1, 2014

$100 + tax (?) for Add'l Ins for one of my customers, paid bill just last week. I deal with local operations of 2 large international corp's that require this for me to be cleared to haul for them; don't really like it, but it seems to be the way it has to be.

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