In the world of commercial insurance, it is common for multiple parties to be tied to the same policy—especially for contractors and small businesses across Washington. Terms like named insured, additional insured, and certificate holder often appear on contracts, yet each carries a very different meaning. Understanding these distinctions helps protect your business, support compliance, and avoid costly coverage gaps.

What Is a Named Insured?

The named insured is the primary policyholder—the person or business that owns the insurance policy and receives the broadest coverage. For example, a contractor, a small business owner, or a Washington-based company purchasing general liability insurance or a business owners policy (BOP) would be the named insured.

Named insureds have full rights under the policy, including the ability to make changes, file claims, and manage coverage for property, liability, commercial auto, cyber liability, or any other insured exposures.

What Is an Additional Insured?

An additional insured is a third party added to your commercial insurance policy so they receive limited liability protection arising from your operations. This is extremely common in contractor insurance across Washington—general contractors often require subcontractors to list them as additional insureds on a general liability or BOP policy.

While additional insureds receive certain protections, they do not have ownership rights to the policy and do not receive the same comprehensive coverage as the named insured.

What Is a Certificate Holder?

A certificate holder is the person or organization that receives proof of insurance. They are not covered under your policy. Instead, listing someone as a certificate holder simply provides documentation that your business carries required coverage—such as contractor insurance, commercial auto insurance, property insurance for business, or specialty contractor insurance in Washington.

Certificate holders may include project owners, lenders, municipalities, or clients who request verification of coverage before work begins.

Why These Differences Matter

Clear understanding of these three roles helps Washington businesses meet contract requirements, ensure proper risk transfer, and maintain the right protection for every job. Whether you’re securing remodeler insurance, HVAC contractor insurance, general liability insurance in Washington, or simply providing certificates for upcoming projects, getting these details right can make all the difference.

If you need help determining how these roles apply to your policy or your next project, our team at Strategy Insurance Brokers LLC is here to support you.