What is the difference between a certificate holder and an additional insured?

A certificate holder is the party listed in the box at the bottom of a certificate of insurance. They receive proof the policy exists, and they may receive notice of cancellation, but only if the policy or an endorsement provides it, since the current ACORD 25 promises notice only 'in accordance with the policy provisions.' They have no rights under the policy and cannot file a claim or get a defense. An additional insured is added to the policy itself by endorsement and is genuinely covered for liability arising from the named insured's operations or use of the premises. The certificate is paperwork; the endorsement is coverage. A landlord who is only a certificate holder is holding evidence that someone else has insurance, not protection for themselves.

Is a certificate holder and an additional insured the same thing?

No. They are often listed on the same ACORD 25, which is why they get confused, but they do completely different jobs. A certificate holder simply receives the certificate and notice if the policy is cancelled or changed; that listing gives them no coverage. An additional insured has been added to the policy by endorsement and can actually tender a claim to the insurer for defense and payment within the endorsement's terms. So a landlord can be both at once, but being a certificate holder alone is not coverage. If a lease says to name a party as additional insured, the certificate line will not satisfy it on its own.

What is additional insured on a COI?

Additional insured status means a party other than the policyholder has been added to the policy and is covered for liability arising from the policyholder's operations or use of a space. On a certificate of insurance (COI), it is usually noted in the description box, but the COI is only evidence; the actual coverage comes from an endorsement attached to the policy, such as the CG 20 11 for leased premises. Additional insured coverage lets that party hand a covered claim to your insurer for defense and indemnity, rather than relying on their own policy. It does not raise your limits; the additional insured shares the limits you already carry.

What is a certificate of insurance (COI)?

A certificate of insurance is a one-page summary, most often the ACORD 25 for liability, that proves a policy is in force. It lists the named insured, the carrier, the policy numbers and dates, the coverage types and limits, and any parties named as certificate holder or additional insured. It is widely requested by landlords, lenders, and clients as proof of coverage before a lease, loan, or contract can close. Keep in mind the COI itself confers no coverage and can change the moment the underlying policy does; it reflects coverage at the moment it was issued. For actual coverage, the endorsement behind it is what matters.

What insurance can a landlord require a commercial tenant to carry?

A commercial landlord can generally require whatever the lease specifies, and most require commercial general liability at a stated minimum limit (often $1 million per occurrence), the landlord named as additional insured, and a waiver of subrogation. Many also require the tenant to insure their own contents and improvements, and to carry workers' compensation if they have employees. Arizona requires workers' compensation for any employer with one or more employees. Depending on the operation, a lease may also call for umbrella, auto, or professional liability. The landlord usually insures the building shell separately under their own lessor's risk policy.

Certificate holder vs additional insured: what your Arizona commercial lease requires

A landlord hands you a lease and the insurance clause says you must name them as an “additional insured.” Your previous broker just listed the landlord as a “certificate holder” and called it done. Those are not the same thing, and the difference decides whether the landlord is actually protected or just holding a piece of paper. This matters on both sides of an Arizona commercial lease, whether you’re the tenant being asked or the landlord doing the asking.

Certificate holder vs additional insured — what’s the difference?

A certificate holder is notified; an additional insured is covered.

The certificate holder is the party named at the bottom of a certificate of insurance, the ACORD 25 for liability. Being a certificate holder means you receive proof the policy exists. You may also receive notice of cancellation, but only if the policy or an endorsement provides it, since the current ACORD 25 promises notice only “in accordance with the policy provisions.” It does not give you any rights under the policy. You can’t file a claim, and you won’t get a legal defense.

An additional insured is a different matter. This party has been added to the policy itself through an endorsement, which extends actual coverage to them for liability arising out of the named insured’s operations or use of the premises. If a customer slips in the tenant’s leased space and sues both the tenant and the landlord, an additional-insured landlord can tender that claim to the tenant’s insurer for defense and indemnity. A certificate-holder landlord is on their own.

The trap is that a certificate can list a landlord as a certificate holder and look official without any endorsement behind it. The certificate is evidence; the endorsement is the coverage. We cover the mechanics of these endorsements in more depth in understanding additional insured requirements.

Why does my landlord require me to name them as additional insured?

Because they want to be defended by your insurer, not just told you have insurance.

When you operate out of a leased space, claims that arise from your business can drag the property owner in: a visitor injured in your suite, a delivery accident in the common area connected to your operation, a fire that started in your unit. Plaintiffs name the deepest pockets they can find, and that often includes the building owner. Additional insured status lets the landlord push that defense, and any settlement, onto your general liability policy, which is exactly the risk they handed you by leasing you the space.

It also keeps the landlord’s own loss history clean. A claim defended under your policy doesn’t hit their property or liability program. That’s why nearly every commercial lease in Arizona requires it, and why “certificate holder only” rarely satisfies the clause.

Which endorsement actually does it?

For leased real estate, the standard form is the CG 20 11, “Additional Insured – Managers or Lessors of Premises.” It adds the landlord or property manager as an additional insured for liability arising out of the ownership, maintenance, or use of the part of the premises leased to you. Coverage is tied to the specific premises listed in the endorsement’s schedule, so the address has to be right.

Two things are worth knowing. First, the CG 20 11 generally limits the landlord’s coverage to liability connected to your occupancy; it doesn’t cover the landlord’s sole negligence elsewhere on the property. Second, adding an additional insured does not raise your policy limits. The landlord shares the limits you already carry. If your lease demands higher limits, that’s a separate conversation with your broker.

Some leases also call for primary and non-contributory wording, meaning your policy pays first before the landlord’s own insurance is touched. That’s a separate endorsement and should be confirmed, not assumed.

What is a waiver of subrogation, and why does my lease want one?

A waiver of subrogation stops the insurers from suing each other after a covered loss.

Subrogation is the right of an insurer that pays a claim to recover from whoever caused it. Say a fire starts in your unit and the landlord’s property insurer pays to rebuild. Without a waiver, that insurer could then sue you to get its money back. A mutual waiver of subrogation in the lease says neither side’s insurer will pursue the other, and each party relies on its own coverage instead.

On a general liability policy, this is added with the CG 24 04 endorsement. It is not automatic; it has to be requested and put on the policy before a loss happens. Many Arizona commercial leases require waivers running both directions, so check whether your lease asks for one and get it endorsed before you move in, not after a claim.

Here’s the comparison at a glance

Feature	Certificate holder	Additional insured
Listed on the certificate (ACORD 25)	Yes	Yes (and on an endorsement)
Added to the policy by endorsement	No	Yes (e.g., CG 20 11)
Can file a claim / get a defense	No	Yes, within the endorsement’s terms
Receives cancellation / change notice	Only if endorsed / per policy provisions	Only if endorsed / per policy provisions
Satisfies a “name us as additional insured” lease clause	No	Yes
Typical extra cost	None	$0 if blanket; otherwise a per-endorsement fee

The cost line above is a general guide, not a quote. Your actual premium depends on the carrier and your risk.

My tenant won’t name me as additional insured — what should I require?

Put it in the lease in writing and verify the endorsement, not just the certificate.

If you’re the landlord, your insurance clause should require the tenant to carry commercial general liability at a stated minimum limit, name you, your property manager, and your lender as additional insureds via the CG 20 11, and provide a waiver of subrogation. Then ask for a copy of the actual endorsement. A certificate listing you as certificate holder proves nothing about your coverage status.

Keep the difference between liability and professional exposures in mind when you set requirements. A tenant whose risk is advice-based may also need coverage that general liability doesn’t touch, which we explain in general liability vs professional liability. And the building shell is your responsibility: most landlords insure the structure under their own lessor’s risk only (LRO) policy while the tenant insures their contents and improvements.

Where BrokerPro fits

BrokerPro places Arizona commercial general liability and lessor’s risk policies and issues the endorsements and certificates a lease actually requires: CG 20 11 additional insured, CG 24 04 waiver of subrogation, primary and non-contributory wording, and ACORD 25 certificates that match what your landlord or tenant is asking for. If you’re a landlord whose building is hard to place, or a tenant being held to a strict insurance clause, submit your property or operation or call 602-301-5171 and we’ll work to match the paperwork to what your lease actually requires.