After every legal transaction, there is always a document to show the existence of the transaction. In insurance, a certificate is a document that shows and provides details of the specific insurance coverage.
The certificate shows most things needed to prove your agreement with an insurance company. It contains information like an insurance company, named insured, policy number, types and limits of coverage, and also the policies’ effective periods.
However, the certificate should not be replaced with the information provided by the actual insurance policies. It’s documented information to prove or show your insurance coverage.
To make sure a party has the appropriate insurance coverage. Certificates are always requested by other parties to make an agreement, sign a contract, or make a transaction.
What is the Certificate of Insurance
Meanwhile, the certificates are used in conditions where significant losses or liability are of priority. Contractors and small-business owners often have a C.I that provides security against liability for accidents and injuries enquired at their workplaces. When getting liability insurance it is possible for getting an insurance certificate.
Before a business owner or contractor gets contracts from customers without a certificate of insurance it’s very hard. This is because major companies and individuals will like to work with contractors, that are insured.
Every client needs to know that contractor. And the business owner is insured so that they will not think of any risk, damage or injury working with the contractor
Validating a Certificate of Insurance
Before most clients will work with a business owner or contractor, they may request from the insurance company. A. C. I. for the contractor or business owner they wish to work with. The client will confirm if the name of the insured on the C.I. Provided by the insurance company is the same match with the business owner or contractor they are considering.
It is very important for the client to also check the policy coverage dates to be sure the certificate of I. is current. To also be safe, if C. I. is set to expire before the contracted work is completed. The client should seek a new certificate to keep things safe.
More details to know about the C.I
There are different sections in the certificate of insurance indicating different types of liability coverage such as general, Umbrella, auto, workers’ compensation, etc.
The policyholder, (i.e the insured) the individual, business owner, or company purchasing an insurance policy. It is also the person whose registered name appears on the certificate as being protected by the insurance company.
More details in the C.I. to coverage levels included the policyholder’s name, description of the kind of operations performed by the insured, and also mailing address.
Meanwhile, the insurance companies’ address is listed. Along with their contact information for the company or the company’s contact person. If there is more than one insurance company listed in the certificate. All the names and details (contact information) are listed.
A client becomes a certificate holder when they request a certificate of insurance. The name and contact information of the client appears on the bottom left corner of the certificate. Along with the statement that shows the right to notify the client of policy cancellations.
This is a summary showing the insured policies and the type of coverage limits. For instance, in the general liability category. It summarizes the limit of the 6 policies offered and also shows if the coverage applies to a claim or by the basis of occurrence.
If you have a story you want to tell, send it to Cinema9ja Ent. via [email protected]