Can a certificate of insurance confer new rights to the certificate holder?

A certificate of insurance serves primarily as a proof of coverage and does not create any rights for the certificate holder beyond what is already outlined in the insurance policy. It reflects the fact that insurance is in place but does not alter the terms of the underlying contract between the insurer and the insured.

The primary function of a certificate of insurance is to provide information to third parties about the existence of insurance coverage and its basic terms. However, it does not grant the certificate holder any new or additional rights, such as the ability to make claims on the policy or to enforce the provisions of the insurance contract, which remains solely between the insurer and the insured.

In the insurance industry, this understanding is critical as it informs stakeholders about the limitations and appropriate use of a certificate of insurance. It upholds the principle that coverage is confined to the policyholder and does not extend new rights to third parties.