Definition of Certificate of Insurance

A “Certificate of Insurance,” as that term is used in commercial leasing, is a document sent to a Certificate Holder by an insurance agent that lists the policy or policies that a party has obtained.  Most often, the party obtaining the insurance is the tenant, and the Certificate Holder is the landlord.  Sometimes the landlord is required to carry insurance, such as fire insurance on the building, in which case the Certificate Holder is the tenant.  A property manager may also be a Certificate Holder.

WARNING & COMMENT: In 2009 the standard forms for Certificates of Insurance were changed so that they no longer provide for an effective notice to the Certificate Holder of a cancellation of any of the policies listed on the certificate.  These new forms state that a notice of cancellation “will be delivered in accordance with the policy provisions” however most policies do not contain provisions for notice.  The net result is that, despite the misleading language, no notice need be given when a policy is cancelled.