If you lease your restaurant space, work with third-party vendors, or participate in special events or food festivals, you've probably been asked to provide a Certificate of Insurance (COI) or add someone as an additional insured on your general liability policy.
These requests can feel confusing or bureaucratic, but they're actually a normal and important part of commercial insurance. Understanding what landlords and vendors want, why they want it, and how to handle these requests efficiently can save you time, prevent lease or contract disputes, and make sure you're properly protected.
At Anchor Insurance, we help restaurant owners navigate COI requests, additional insured endorsements, and contract insurance requirements every day. Here's what you need to know.
What Is a Certificate of Insurance (COI)?
A Certificate of Insurance (COI) is a simple one-page document that proves you have active insurance coverage. It lists:
- The insurance company providing your coverage
- Your policy numbers
- The types of coverage you have (general liability, property, etc.)
- Your coverage limits and deductibles
- Your policy effective dates
- Who is listed as an additional insured (if applicable)
A COI does not change or extend your policy. It's simply proof that coverage exists.
Who Typically Requests COIs from Restaurants?
- Landlords - Almost all commercial leases require tenants to carry general liability insurance and provide a COI naming the landlord as an additional insured
- Event organizers - If you participate in food festivals, pop-ups, or catering events, organizers will typically require a COI
- Vendors and suppliers - Equipment lessors, food suppliers, and service providers may ask for COIs, especially for high-value contracts
- Franchisors - If you operate a franchise, your franchise agreement will specify insurance requirements and likely require regular COI submissions
- Lenders - If you have a commercial loan, your lender may require proof of insurance
How Do You Get a COI?
Your insurance broker or carrier can issue a COI for you, usually within a few hours. At Anchor, we handle COI requests as part of our service at no additional charge. Just let us know:
- Who needs to be listed as the certificate holder
- Their mailing address
- Whether they need to be added as an additional insured
- Any specific policy language or endorsements required
What Does It Mean to Add Someone as an Additional Insured?
When you add someone as an additional insured on your general liability policy, you're extending your insurance protection to cover them for claims that arise out of your operations.
In plain English:
If a customer slips and falls in your restaurant and sues both you and your landlord, your general liability insurance will defend and cover both you and your landlord (up to your policy limits).
Why Do Landlords Require This?
Landlords want to be added as additional insureds because it protects them from being dragged into lawsuits caused by your operations. Instead of having to use their own insurance or pay legal defense costs out of pocket, your insurance responds first.
It's a standard commercial lease requirement and is considered reasonable and normal in the restaurant industry.
Does Adding an Additional Insured Cost Extra?
Usually, no. Most general liability policies allow you to add landlords, event organizers, and certain vendors as additional insureds at no extra charge, either automatically or via a simple endorsement.
Some carriers charge a small fee (typically $25-$100 per year) if you add multiple additional insureds or need blanket additional insured coverage. At Anchor, we'll let you know upfront if there's any cost.
Can You Add Unlimited Additional Insureds?
It depends on your policy. Some policies allow you to add additional insureds on a blanket basis (meaning anyone you're required to add by written contract is automatically covered). Others require you to list each additional insured individually by endorsement.
Blanket additional insured coverage is more flexible and is especially useful if you participate in multiple events or work with many vendors throughout the year.
Common Additional Insured Scenarios for Restaurants
1. Landlords
Scenario:
You lease a space for your restaurant. Your lease requires you to carry $1 million in general liability insurance and name the landlord as an additional insured.
What you need to do:
- Purchase general liability insurance with at least the required limits
- Add your landlord as an additional insured (usually via a standard landlord endorsement)
- Provide a COI to your landlord showing they are named as an additional insured
2. Event Organizers (Food Festivals, Pop-Ups)
Scenario:
You're participating in a weekend food festival. The event organizer requires all vendors to carry $2 million in general liability insurance and name the organizer as an additional insured.
What you need to do:
- Confirm your general liability policy meets or exceeds the required limits
- Add the event organizer as an additional insured (many policies allow this automatically under blanket AI coverage)
- Provide a COI to the event organizer before the event
3. Equipment Lessors
Scenario:
You lease a commercial-grade pizza oven from a vendor. The lease agreement requires you to add the lessor as an additional insured.
What you need to do:
- Add the equipment lessor as an additional insured
- Provide a COI showing the lessor is covered
4. Franchisors
Scenario:
You operate a franchised restaurant. Your franchise agreement specifies minimum insurance requirements and requires you to name the franchisor as an additional insured.
What you need to do:
- Purchase general liability insurance that meets franchise requirements
- Add the franchisor as an additional insured
- Provide updated COIs annually or whenever your policy renews
What to Watch Out For in COI and Additional Insured Requests
Not all COI and additional insured requests are created equal. Here are some things to watch for:
1. Unreasonable Insurance Requirements
Some landlords or vendors may ask for insurance limits that are far higher than industry norms (e.g., $5 million or $10 million for a small cafe). If a requirement seems excessive, push back or negotiate. You may also be able to meet it by purchasing an umbrella policy rather than increasing your primary limits.
2. Primary and Non-Contributory Language
Many landlords and event organizers will ask that your insurance be primary and non-contributory, meaning your policy pays first, and their policy doesn't contribute. This is a standard request and is usually easy to accommodate with a simple endorsement.
3. Waiver of Subrogation
Some contracts require you to waive your right of subrogation, meaning your insurance carrier can't go after the landlord or vendor to recover costs after paying a claim. This is also a common request and can usually be added via endorsement.
4. COI Expiration Dates
COIs are only valid for the policy period shown on the certificate. When your policy renews, you'll need to provide updated COIs to anyone who had them on file. At Anchor, we proactively send updated COIs to your landlord and key vendors at renewal.
How Anchor Handles COI and Additional Insured Requests
At Anchor Insurance, handling COI requests and additional insured endorsements is part of our core service. Here's how we make it easy:
- We review your lease and vendor contracts to make sure your insurance meets all requirements before you bind coverage
- We issue COIs quickly - usually within a few hours of your request
- We add additional insureds via endorsement or blanket coverage, depending on what's most cost-effective
- We track your COI recipients and send updated certificates automatically when your policy renews
- We flag unusual or unreasonable requirements and help you negotiate or find creative solutions
Our goal is to make sure your insurance program supports your business operations rather than creating friction with landlords, vendors, or event partners.
Frequently Asked Questions
What is the difference between a certificate holder and an additional insured?
A certificate holder is simply the recipient of the COI - they get proof that you have insurance, but they are not covered under your policy. An additional insured is actually covered by your policy for claims arising out of your operations.
How do I add my landlord as an additional insured?
Contact your insurance broker or carrier and request an additional insured endorsement for your landlord. Provide the landlord's legal name and address. Your broker will add the endorsement and issue a COI showing the landlord is covered. At Anchor, we handle this as part of our standard service.
Does it cost extra to add someone as an additional insured?
Usually, no. Most general liability policies allow you to add landlords and certain vendors as additional insureds at no extra charge. Some carriers charge a small fee (typically $25-$100 per year) for multiple additional insureds or blanket coverage. We'll let you know upfront if there's any cost.