The additional insured will also need evidence that there was in fact a contract requiring such coverage. While a certificate of insurance indicating that the certificate holder has been added as an additional insured is evidence of a contractual requirement, a better approach may be to require the certificate to refer to the contract requirement. In compliance with the contract requirements, certificate holder is an additional insured under the policy. If possible, the contracts themselves should be retained. Finally, blanket additional insured endorsements restrict insurers ability to provide notice of cancellation to additional insureds.
Most insurance policies require such notice to be provided only to the named insured.
Additional insureds often try to obtain a guarantee of notice of cancellation by modifying the certificate language, but this is an unreliable approach. However, additional insureds in some states, most notably California but possibly others, have added protection regarding cancellation of coverage. For this statutory right to apply, the additional insured must be listed by name on the endorsement. Summary Blanket additional insured endorsements are useful tools for preventing administrative oversights and reducing paperwork, but they also carry some risks for both the named insured and the additional insured. Fortunately, these risks can be managed fairly effectively.