Why certificate of insurance

Your name, business name and contact information will appear on the document, usually in the lower left hand corner. Make sure your information is correct. This may happen when a company owns more than one sub-company and all are covered under a single policy. The first thing to understand about a COI is that it does not extend insurance coverage to the certificate holder. There is no increased level of insurance available just because someone has requested a COI. It has information about your coverage , but does not in and of itself allow for any changes in coverage.

It is merely legal evidence of an existing policy. Likewise, a COI is just a statement of the existing coverage and proof that you have insurance. In general, the COI would be asked for at the beginning of a project or work relationship. The certificate holder would keep it filed with other business papers, and review it periodically.

They will request a certificate of insurance to ensure the roofing company has adequate coverage for the project so the business is not held liable for:. Requesting the certificate but not knowing how to read it will do you no good. The same is true if you pass it off to someone who is not familiar with insurance or this type of document.

General components of a standard certificate of insurance are:. You are about to be logged out due to inactivity. Clicking OK will refresh your session. If you choose to continue you will be subject to the privacy and security policies of the other website.

Similar to how an insurance card would show confirmation of your health plan, a certificate of insurance demonstrates that your small business is covered. This ultimately gives clients the confidence to work with you. Typically, the insurance certificate is issued upon your request.

Remember that this document contains less information than your standard insurance policy papers — it simply serves as a means of proof that your business is actually covered. Often times, this is easily accommodated, but you must submit a request to your insurance agent so that they can review and issue your certificate accordingly.

Contact RLI to acquire an insurance policy that will best suit your home business. Because many companies and individuals hire contractors, the client needs to know that a business owner or contractor has liability insurance so that they will not assume any risk if the contractor is responsible for damage, injury, or substandard work.

Typically, a client will request a certificate directly from the insurance company rather than the business owner or contractor. The client should confirm that the name of the insured on the certificate is an exact match of the company or contractor they are considering.

Also, the client should check the policy coverage dates to ensure that the effective date of the policy is current. The client should secure a new certificate if the policy is set to expire before the contracted work is complete. Certificates of insurance contain separate sections for different types of liability coverage listed as general, auto, umbrella, and workers' compensation.

In addition to coverage levels, the certificate includes the policyholder's name, mailing address, and describes the operations the insured performs. If several insurance companies are involved, all names and contact information are listed. When a client requests a COI, they become a certificate holder. The client's name and contact information appear in the bottom left-hand corner along with statements showing the insurer's obligation to notify the client of policy cancellations.

For example, the general liability section summarizes the six limits the policy offers by category and indicates whether coverage applies on a per claim or per occurrence basis.

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