What is a certificate of insurance?
A certificate of insurance is a document that gives evidence of the insured's financial ability (via an insurance policy) to respond to a claim. Under most circumstances, no coverage benefits are afforded to the certificate holder; the certificate merely confirms that the subject company carries insurance.
Why are certificates needed?
Certificates give evidence that the other party has appropriate insurance to cover the claims for which they may be responsible.
Providing a certificate of insurance that does not include the “additional insured” verbiage simply acts as “proof of insurance”. Do not include “additional insured” coverage unless it is specifically requested by the certificate holder.
Additional insureds are provided coverage on an excess basis. Make certain that the property, service etc. is being donated and that you have a copy of the certificate holder’s insurance requirements or a letter stating such requirements. Every certificate of insurance that we issue adding an entity or organization as an “additional insured” increases the chance of a claim being made against the BSA General Liability Insurance Program. Before providing a certificate of insurance you should:
We are all afforded the same insurance coverage. A certificate of insurance issued from one council to another is not necessary.
Chartered Organizations and Participating Organizations do not need a certificate of insurance. The Chartered Organization Endorsement and Participating Organization Endorsement is an actual part of the insurance policy contract and are enforceable under the policy contract. Give them a copy of the endorsement instead. You may be asked to provide a certificate of insurance as well as the endorsement. Sample wording to use for the description of:
Unit Service Projects
When a Scout unit is doing something to benefit a city, county, municipality, etc. such as “Adopt a Highway” or some other cleanup project, the beneficiary of the unit’s “good deed” should not ask for insurance protection by being named as an additional insured or ask that a hold harmless be signed. A certificate of insurance evidencing “proof of insurance” can be provided. Sample wording to use for the description of Unit Service Projects:
Eagle Scout Projects
The Boy Scouts of America Comprehensive general liability insurance policy covers the National Council and all local councils on a worldwide basis. The NAMED INSURED on the policy is the Boy Scouts of America, National Council and all local councils, and Learning for Life. The following are ADDITIONAL INSUREDS: Scouting professionals and employees, units, chartered organizations or participating organizations, and all registered volunteers participating in an official Scouting or Learning for Life activity and in the scope of their duties as such. Eagle Scout Projects are planned, guided, and managed by a youth. Youth are not an INSURED. A certificate of insurance that verifies that the unit and registered BSA volunteers have primary coverage can be provided. “Additional insured” coverage should not be extended to the certificate holder for Eagle Scout Projects. Sample wording to use for the description of Eagle Scout Projects:
A “blanket” certificate of insurance (covers the policy period) that names an entity or organization as an “additional insured” can be provided for unit’s regular meeting place. Sample wording to use for the description of an activity when an entity/organization asks to be named as an “Additional Insured”:
The certificate holder is named as an additional insured by virtue of a written or oral contract or by the issuance/existence of a permit or certificate of insurance but only with respect to operations by or on behalf of the Insured, or to facilities of, or facilities used by the Insured and then only for the limits of liability specified in such policy for all official Scout meetings and activities held on the certificate holder’s property during the policy period.
Do not provide a “blanket” certificate of insurance when adding an entity or organization as an “additional insured” for an event that is taking place in a public area (park/mall/etc.) and/or for participation in events such as a parade, food booth, or swimming pool. Be very specific in the description of the activity and date of event: Sample:
Event/Date: Silvergate District’s Pinewood Derby on Feb 2, 2008.
The certificate holder is named as an additional insured by virtue of a written or oral contract or by the issuance/existence of a permit or certificate of insurance but only with respect to operations by or on behalf of the Insured, or to facilities of, or facilities used by the Insured and then only for the limits of liability specified in such policy for the event specified herein.
Sample wording to use for the description of an activity when asked for evidence or proof of insurance coverage: