What's A Certificate Of Insurance And When Do You Need One?

Posted on: 24 February 2021

If you're involved in business, you're probably going to get asked for a certificate of insurance at some point. This isn't hard to get, but you need to make sure you have the right one. Here's what you need to do.

What is a Certificate of Insurance?

A certificate of insurance is proof that you have insurance coverage. It's similar to the insurance card that you have to keep in your car in case you get pulled over or get into an accident. The difference with a certificate of insurance is that it has details of exactly what coverage you have and your policy limits.

Why Do Customers Want Your Certificate of Insurance?

Customers want to be protected in case something goes wrong while they're working with you. Even if you've gone through a selective hiring process where they've decided you have a good reputation, they still want that financial backing. Accidents can happen to anyone, and the cost in the business world can be in the millions of dollars.

A certificate of insurance provides a better guarantee than just asking if you have coverage. A business owner could lie about having coverage or not understand the coverage that they have. The certificate of insurance lets the customer review and verify the coverage on their own.

How Do You Get a Certificate of Insurance?

You should get a certificate of insurance when you buy your commercial insurance policy. This functions as part of your receipt and is something that you should keep for your records. Most insurance companies have a website where you can also view your certificate of insurance or request a new copy by mail.

Some customers will want to receive your certificate of insurance directly from the insurance company. Most insurance companies allow you to request a copy be sent to them by mail, email, or fax.

Can You Add a Customer to a Certificate of Insurance?

Some customers want to be named on your certificate of insurance. This allows them to deal directly with the insurance company to make a claim instead of having to go through you.

This is a standard business practice that is fairly easy to do. You just need to submit an online form or give the insurance company a call. There is often no additional cost if what you're doing is part of your regular work that would already be covered anyway.

To learn more about certificates of insurance, contact a local commercial insurance agency today, like United Counties Insurance Group.


Little-known Insurance Tips

While I have had auto insurance ever since I bought my first car at 16 years old and home insurance ever since I bought my first home several years ago, I have to admit that over the years I knew very little about insurance. I tended to just look at the price of the coverage and sign the paperwork without really looking into the pros and cons of each policy. After my friend was in a car accident recently (thankfully, she is okay!) and she said she had to pay for some of the damage to the other vehicle out-of-pocket even though she had a minimum state coverage auto insurance policy, I decided to put a lot of careful research into insurance policies and what they really offer. I want to help others by sharing the information I have learned on a blog. I hope I can help you!