Insurance Comparison
Certificate of Insurance vs Additional Insured Status
Understand the critical difference between a Certificate of Insurance and Additional Insured status — what each actually provides and why your clients demand both.
| Dimension | Certificate of Insurance (COI) | Additional Insured (AI) Status |
|---|---|---|
| What It Is | A document that proves your insurance exists and summarizes your coverage limits, carrier, and policy dates. | An endorsement added to your policy that extends your liability coverage to protect a third party (the additional insured). |
| Legal Protection Provided | None. A COI is informational only — it confers no rights, coverage, or legal standing to the certificate holder. | Real coverage. The additional insured can file a claim under your policy for liability arising from your work on their behalf. |
| Cost | Free. Your agent issues COIs at no charge as a standard service. | Typically $25-$100 per endorsement, though some carriers include blanket additional insured coverage at no extra charge. |
| How It Is Obtained | Request from your insurance agent. Usually issued same-day via ACORD 25 or ACORD 28 form. | Requires an endorsement to your policy — typically CG 20 10 (ongoing operations), CG 20 37 (completed operations), or CG 20 26 (designated person/organization). |
| Who Typically Requests It | Nearly every client, property manager, and general contractor will request a COI before allowing you on their property. | General contractors, commercial property managers, HOAs, and government entities typically require AI status on larger or ongoing contracts. |
| Duration | Valid only for the policy period shown. Automatically expires when the policy expires or is cancelled. | Coverage applies for the duration specified in the endorsement — either ongoing operations only, or including completed operations (which extends protection after the job ends). |
| Cancellation Notice | The COI holder may receive notice of cancellation if the 'cancellation' section is completed, but this is not guaranteed and varies by carrier. | The additional insured is a party to the policy and has a stronger claim to notice of material policy changes. |
| Common Misconception | Many clients believe a COI gives them coverage. It does not — it only proves the tree service has insurance. | Being named as additional insured does not give the AI party control over the policy or access to the tree service's full limits without a covered claim. |
| Impact on Your Policy | No impact on your coverage, limits, or premium. | AI claims erode your policy limits and aggregate. Multiple AI endorsements can increase your exposure and may affect your loss history. |
What It Is
Certificate of Insurance (COI)
A document that proves your insurance exists and summarizes your coverage limits, carrier, and policy dates.
Additional Insured (AI) Status
An endorsement added to your policy that extends your liability coverage to protect a third party (the additional insured).
Legal Protection Provided
Certificate of Insurance (COI)
None. A COI is informational only — it confers no rights, coverage, or legal standing to the certificate holder.
Additional Insured (AI) Status
Real coverage. The additional insured can file a claim under your policy for liability arising from your work on their behalf.
Cost
Certificate of Insurance (COI)
Free. Your agent issues COIs at no charge as a standard service.
Additional Insured (AI) Status
Typically $25-$100 per endorsement, though some carriers include blanket additional insured coverage at no extra charge.
How It Is Obtained
Certificate of Insurance (COI)
Request from your insurance agent. Usually issued same-day via ACORD 25 or ACORD 28 form.
Additional Insured (AI) Status
Requires an endorsement to your policy — typically CG 20 10 (ongoing operations), CG 20 37 (completed operations), or CG 20 26 (designated person/organization).
Who Typically Requests It
Certificate of Insurance (COI)
Nearly every client, property manager, and general contractor will request a COI before allowing you on their property.
Additional Insured (AI) Status
General contractors, commercial property managers, HOAs, and government entities typically require AI status on larger or ongoing contracts.
Duration
Certificate of Insurance (COI)
Valid only for the policy period shown. Automatically expires when the policy expires or is cancelled.
Additional Insured (AI) Status
Coverage applies for the duration specified in the endorsement — either ongoing operations only, or including completed operations (which extends protection after the job ends).
Cancellation Notice
Certificate of Insurance (COI)
The COI holder may receive notice of cancellation if the 'cancellation' section is completed, but this is not guaranteed and varies by carrier.
Additional Insured (AI) Status
The additional insured is a party to the policy and has a stronger claim to notice of material policy changes.
Common Misconception
Certificate of Insurance (COI)
Many clients believe a COI gives them coverage. It does not — it only proves the tree service has insurance.
Additional Insured (AI) Status
Being named as additional insured does not give the AI party control over the policy or access to the tree service's full limits without a covered claim.
Impact on Your Policy
Certificate of Insurance (COI)
No impact on your coverage, limits, or premium.
Additional Insured (AI) Status
AI claims erode your policy limits and aggregate. Multiple AI endorsements can increase your exposure and may affect your loss history.
What Tree Service Companies Need to Know
If you run a tree service, you will deal with Certificates of Insurance and Additional Insured requests on a near-daily basis. Every property manager, general contractor, and HOA will ask for one or both before you can set foot on their property. Understanding the difference is not just administrative — it directly affects your liability exposure and your ability to win contracts.
A Certificate of Insurance is simply a snapshot of your coverage. It is an ACORD 25 form that lists your carrier, policy number, coverage types, limits, and effective dates. It proves to the certificate holder that you have insurance. That is all it does. A COI confers absolutely no coverage or legal rights to the holder. If your tree crew damages a property manager's building, the property manager cannot file a claim under your policy based on the COI alone — they would need to file a third-party claim against you, and your policy would respond as part of that process.
Additional Insured status is fundamentally different. When you add a party as an additional insured via endorsement CG 20 10 (for ongoing operations) or CG 20 37 (for completed operations), that party gains actual coverage under your policy for liability arising from your work. If a tree your crew is removing falls on a neighboring building and the property owner sues both your company and the general contractor who hired you, the GC — as an additional insured on your policy — has your GL carrier defending them and paying covered claims on their behalf.
The endorsement forms matter. CG 20 10 covers the additional insured only for your ongoing operations — while you are actively working. CG 20 37 extends that protection to completed operations, covering claims that arise after the work is done (such as a tree that was improperly trimmed falling months later). Many savvy GCs require both CG 20 10 and CG 20 37 together. The older CG 20 26 form names a specific person or organization and may provide broader coverage than the current CG 20 10.
For tree services, the practical impact is this: carry a policy that includes blanket additional insured coverage (many contractors' GL programs include this at no extra charge), so you can add any client as an AI without calling your agent each time. Make sure your blanket AI endorsement covers both ongoing and completed operations. And never confuse a COI request with an AI request — they are fundamentally different things, and providing only a COI when a client needs AI status can leave your client exposed and cost you the contract.
Frequently Asked Questions
Can I add anyone as an additional insured on my tree service policy?
You can add any party with whom you have a contractual relationship — clients, general contractors, property managers, property owners. You cannot add random third parties. Most carriers require a written contract or agreement that obligates you to provide AI status. A blanket additional insured endorsement automatically covers anyone you are contractually required to add.
What is the difference between CG 20 10 and CG 20 37?
CG 20 10 (Additional Insured — Owners, Lessees or Contractors — Scheduled Person or Organization) covers the additional insured for your ongoing operations only. CG 20 37 (Additional Insured — Owners, Lessees or Contractors — Completed Operations) extends that coverage to claims arising after the work is done. Most GCs require both endorsements.
Does adding an additional insured reduce my available coverage limits?
Yes. Additional insured claims are paid from your policy limits. If an AI files a $500,000 claim against your $1M/$2M GL policy, it reduces your aggregate the same as any other claim. This is why adequate limits and umbrella coverage are important for tree services that regularly add multiple AIs.
My client is asking for primary and non-contributory coverage. What does that mean?
Primary and non-contributory means your policy pays first (primary) and does not seek contribution from the additional insured's own GL policy (non-contributory). This is added via endorsement CG 20 01 or included in many blanket AI endorsements. It is a common requirement in tree service contracts with GCs and property managers.