Additional Insured Certificate
What is it?
This document is actually an ENDORSEMENT that amends your insurance policy to temporarily add a specified person or organization to be covered by your board’s insurance policy, usually for a specific event or activity. Most commercial insurers charge additional premiums to cover the extra risk associated with any outside party being insured, as often the actions of such a party are beyond the control of the original insured. OSBIE does not charge for adding an additional insured on your policy, however, boards need to be aware that when they request this endorsement to add another party, they are “lending” their insurance to that outside party who may not be familiar with or bound to the school board’s rules, regulations, policies or procedures. By requesting this endorsement to be issued, a school board is accepting legal liability for the actions of that third party, and any claims arising out of these endorsements will impact the school board’s future premiums.
When is it used?
- Your board provides this certificate when the school board wishes to use the premises or facilities owned by another party for school purposes or activities (e.g. fund raising booth at a shopping mall, Christmas carols at the mall, municipally owned swimming pool for phys ed class, etc.);
- Your board provides this certificate when the school board wishes to extend coverage to an outside organization to fulfill a curricular or administrative need that is not available internally (e.g. hiring a camp to run a leadership course for high risk students, etc.)
- Your board would request this certificate naming your board as an Additional Insured from any group or organization who wishes to use your premises or facilities for an event or regular activities.
- Your board would request this certificate naming your board as an Additional Insured from any contractor hired to provide services on your behalf (e.g. electrical, plumbing, construction, school bus operator, etc.)
- Commonly mistaken for a request for a Confirmation of Coverage Certificate (see above).
- Organizations or vendors who wish to provide services to school boards but who do not have their own insurance. School boards should not agree to extend their Liability coverage to outside organizations or individuals who do not carry insurance for their own business operations.
- Business operators or vendors who invite school students to their locations to engage in activities or programs which form part of a private business operation, regardless of whether or not admission fees are charged. (NOTE - this request is becoming more frequent as business operators are attempting to transfer their risks to the school board while collecting revenue from participants. School boards should not agree to provide endorsements to amusement park operators, camp operators, ski operators, excursion/tour operators, etc. unless the operator is being requested to provide a specific program to meet a curriculum requirement – contact OSBIE Risk Management staff for further information.)
- Coop employers – employers participating in a curriculum based cooperative education or experiential learning program do not require an endorsement from the school board naming them as an additional insured. Employers under these programs are protected against employer’s liability under the WSIB coverage carried through the Ministry of Education and Training for any students working under the co-op program. The employer is automatically protected by the school board’s Liability policy issued by OSBIE for a coop student’s negligent acts that cause bodily injury or property damage during the placement at the employer’s location.
- Cases where contracts require both parties to obtain endorsements from each other naming the other party as an additional insured – this is unnecessary and redundant.
The concept of transferring risk remains a very effective tool to ensure that the risk is being borne by the party who has control over a premises or an activity that is taking place on the premises. Proper use of these forms will ensure that each party is fully informed of their responsibilities and accepting of the risks that go with them.
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