What's a Certificate of Insurance?
Many clients come to us requesting a certificate of their insurance. What exactly is that?
Let's break it down:
A certificate of insurance is a one page document that shows proof to someone (called the Certificate Holder) that you are insured. This document displays your policy coverage limits and term dates. It does not show your premium.
Why do people request a certificate?
The person requesting it (the certificate holder) wants to know that you are insured should something go wrong. Maybe you're doing work at their home and they want to make sure there's an insurance policy in force if you become liable for damages. Or perhaps you're in the towing business and the shop owner needs to see that you have adequate coverage. Municipalities also often want to see your insurance when submitting permit work, etc.
What about additional insured?
Additional insured is an endorsement that will give the holder coverage under your policy. An additional insured is not named as an insured on your declaration page, but are protected by the policy, usually in regard to a specific interest. Some companies may charge a fee to add an additional insured. This status may be left for the policy lifetime or removed once the job is done per insured's request.
What changes can be made to a certificate?
Special wording may be able to be added upon request. Occasionally your certificate holder wants to see certain wording per their contractual agreement. This can sometimes be added easily or other times may need to have approval from your providing insurance company.