Compliance & insurance glossary

The certificate-of-insurance world is full of jargon that decides whether you’re actually covered. Here are the terms small businesses hit most often, in plain English — no insurance degree required.

Certificate of Insurance (COI)

A certificate of insurance (COI) is a one-page document from an insurer or broker that proves a business carries insurance. It summarizes the policy types, coverage limits, and effective and expiration dates — but it is a snapshot, not the policy itself, and it can fall out of date the moment a policy changes. Read more →

ACORD 25

ACORD 25 is the standard Certificate of Liability Insurance form used across the U.S. insurance industry. When someone asks for "a COI," they almost always mean an ACORD 25 — it lays out general liability, auto, umbrella, and workers' compensation coverage in one fixed, familiar format. Read more →

Additional Insured vs. Certificate Holder

A certificate holder simply receives a copy of the certificate of insurance. An additional insured is actually covered under the vendor's policy. The difference is the whole game: only an additional insured can be defended and paid under that policy — being listed only as a certificate holder gives you no coverage at all. Read more →

Additional Insured

An additional insured is a person or business added to someone else's insurance policy so they are covered by it. If a contractor names your company as an additional insured, their general liability policy can defend and pay claims that arise out of the contractor's work — shifting that risk off your own insurance. Read more →

Certificate Holder

The certificate holder is the person or business that receives a certificate of insurance. Being the certificate holder means you are sent proof of the policy and, often, notice if it changes — but it does NOT mean you are covered by it. For coverage, you have to be named as an additional insured. Read more →

Waiver of Subrogation

A waiver of subrogation is a clause that stops an insurer from coming after a third party to recover money it paid on a claim. In vendor and lease agreements, it means the vendor's insurer cannot turn around and sue you to recoup a payout — a common requirement in contracts and leases. Read more →