What is a certificate of insurance?

A certificate of insurance or certificate of liability insurance (COI), is a simple form that is issued by an insurance company. Details shared will include the types of coverage, insurance company issued, policy number, named insured, policy effective dates, & the types and dollar value of the limits & the deductibles.

Do I need a certificate of liability insurance?

When liability and large losses are a concern, a certificate of liability insurance is requested. Let’s say, you’re providing software engineering services for a customer, the client may require a certificate of insurance to prove that certain liabilities will be protected during the course of the work. Regardless of what kind of customer you are working with, the right insurance policy and proof of insurance will cover you and your client & give you both peace of mind in knowing you’re protected.

On occasion it could be a requirement to win contracts. Some companies & individuals that hire contractors need to know that they will not be held liable for any damages, injuries, or mediocre work. Because of this, some companies require that you have insurance.

How do you get a certificate of insurance form?

The COI is issued with your policy & should be one of the forms you get when you purchase insurance for your small business. In addition, you can easily request a certificate of liability insurance by contacting the insurance company. If you’re interested in speaking to an agent please reach out to us, we’d love to talk to you.

My client is asking to be added to my certificate of liability insurance;

This is a very common request. Your client may ask to be added to your certificate as a policy holder. Complying to this request will not give them any legal rights under a certificate, the certificate basically establishes that the insurance policy exists.

Certificate of Insurance Best Practice

• Never alter the wording on the ACORD certificate of insurance document
• Use the correct ACORD form (proper edition date, Certificate, Evidence of Property Insurance, etc.) Always send Page 2 of the certificate – it contains an important disclosure and disclaimer.
• Do not issue non-ACORD certificates without approval from the insurer
• Stay in the parameters of the authority granted under your agency agreement
• Document everyone who requested the certificate & what was requested
• When someone wants to be added as an additional insured, immediately request the proper endorsement from the company
• Always comply with the company’s requests for a listing of certificates issued or additional insureds added when operating under a blanket additional insured endorsement
• Don’t make any statements on the certificate without first contacting the insurer to request an endorsement to reflect the coverage being requested
• If a client wants you to review a contract to determine insurance requirements, please be sure the person doing the review is qualified.
• When the policy is canceled, please verify that the company will send notice to all certificate holders. If not, you send a letter to the certificate holders to advise them that the policy has been canceled.
• Don’t issue or sign certificates for policies placed through alternative markets. Always request it directly from the wholesaler. Unless the wholesaler has given the agency written authority to do just that.
• Don’t issue or sign certificates placed through surplus lines carriers, under any circumstances, unless you have a surplus lines license.
• Establish a company wide written procedure for handling certificates of insurance.