What Is a Certificate of Insurance (COI)?

A certificate of insurance (COI) is a document issued by an insurance company or broker. The COI confirms that an 澳洲幸运5官方开奖结果体彩网:insurance policy is in place and outlines its 🐓terms and conditions. For example, a standard COI lists the policyholder’s name, the policy’s effective date, the type of coverage, policy limits, and other important൲ details of the policy.

Without a COI, a company or contractor will have difficulty sec🐈uring clients because they will likely not want to assumeᩚᩚᩚᩚᩚᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ𒀱ᩚᩚᩚ the risk of any costs that might be caused by the contractor or provider.

How Certificates of Insurance (COI) Work

Certificates of insurance (COIs) are used in situations where 澳洲幸运5官方开奖结果体彩网:liability and significant losses are of concern and require a COI, which is in mo🔯st business contexts.&n꧙bsp;A certificate of insurance is used for proving insurance coverage.

Small business owners and contractors often have a COI that proves they have insurance that protects against liability for workplace accidents or injuries. When you purchase liability insuranc💯e, t⛄he insurance company will usually provide an insurance certificate.

Without a COI, a business owner or contractor may have difficulty winnin♒g contracts. Because many companies and individuals hire contractors, the client wants to know that a business owner or contr♈actor has liability insurance so that they will not assume any risk if the contractor is responsible for damage, injury, or substandard work.

Validating a Certificate of Insurance

Typically, a clientꦬ 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 bef🦹ore the contracted work is complete.

Details of a Certificate of Insurance

Certificates of insurance contain separate sections for different types of liability coverage listed as general, auto, umbrella, and workers’ compensation. The term ෴“insured” refers to the policyholder, person, or company appearing on the certificate as being covered by the insurance.

In addition to coverage levels, the certificate includes the policyholder’s name, mailing address, and describes the operations that 𓂃the insured performs. The address of the issuing insurance company is listed, along with contact information for the insurance agent or the insurance agency’s contact person. If several insurance companies are involved, all names and contact information are listed.

When a client requesไts 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.

The certificate briefly describes the insured’s policies and limits provided for each type of coverage. For example, the general liability section summarizes the six limits that the policy offers by category and indicates whether coverage applies per claim or per occurrence. Because state laws determine the benefits provided to injured workers, the workers’ compensation coverage will show no limit. However, an employer’s liability coverage limits should be listed.

How to Get a Certificate of Insurance

If you are requesting a COI from a contractor or business, they should either be able to retrieve it from their insurance company or provide you with their insurance company’s contact information, so you can ask for that proof to be sent to you directly. Be careful, however, if you ask your vendor to provide you with a COI. There have been documented cases of contractors submitting fraudulent COIs.

The Bottom Line

You may need a Certificate of Insurance (COI) in a number of situations. Generally, a client will request a COI directly from your insurance company to confirm you have appropriate iꦕnsurance coverage. If you are hiring a contractor, consider getting a COI from their insurance company, even if you have worked with them before, because their coverage may have changed.