Who is a Certificate Holder?

• A. The insured's own company
• B. A third party with an interest in the insured's ability to provide adequate coverage for the product being carried
• C. The broker
• D. The insurance underwriter

Answer: (B)

A certificate holder is the recipient of a certificate of insurance—usually a third party with an interest in the insured’s ability to provide the required coverage. In freight, that means someone like the shipper, consignee, broker, lender, or client who needs proof that the carrier has the necessary liability or cargo insurance in place. The certificate confirms that coverage exists and may require the insurer to notify the holder of changes, such as cancellation. It isn’t the insured themselves, nor the insurer, nor the broker who issues the certificate; it’s the party that wants to see and rely on the coverage.