📄 Certificates of Insurance: Additional Insured & Contractual Indemnity 🇨🇦
In Canadian business contracts—whether in construction, real estate, or professional services—Certificates of Insurance (COIs) play a critical role. They confirm that insurance coverage is in place, but the fine print matters—especially when it comes to Additional Insured status and Contractual Indemnity.
⚡ Additional Insured (AI)
When a business is added as an Additional Insured on another party’s policy, it means they’re protected under that policy for claims arising from the named insured’s operations. For example:
- A landlord may require tenants to add them as an AI to protect against liability related to tenant activities.
- A general contractor might request subcontractors to add them as an AI for work performed on a project.
🛡️ Contractual Indemnity
This clause shifts responsibility for certain risks. It ensures one party agrees to defend, indemnify, and hold harmless another in the event of a claim. When combined with appropriate insurance coverage, it offers powerful protection against unexpected liabilities.
📌 Why It Matters in Canada
- Without AI status, a company could be left without coverage in the event of a loss.
- If insurance certificates and contractual indemnity clauses aren’t aligned, businesses may face costly coverage gaps.
- Provincial legislation—particularly in BC and Ontario—makes careful review of COIs and contracts essential.
✅ The Takeaway
Always review Certificates of Insurance carefully and ensure they align with your contract requirements. Adding the right endorsements today can prevent disputes, legal issues, and financial strain tomorrow.
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