Business transactions frequently require the valuable protection provided by insurance. A Certificate of Insurance is a document that is often requested as proof that adequate insurance exists. A certificate is not the same as a policy and certificates do not affect the coverage provided by a particular insurance policy. –. A certificate is a separate document that is used to comply with a common contract requirement to verify certain types and amounts of insurance.
The entity or party requiring the certificate often demand that they appear as “additional insureds.” This requires an endorsement (change) to the policy and it gives them coverage for injury or damage resulting from the contract.
When you’re required to provide a Certificate, send us a copy of the insurance portion of your contract. The contract allows us to assist you in determining what liabilities you are accepting and what can be done to modify your insurance program to best protect your financial well-being.
Ask a professional at The Flanders Group to help determine how you should be obtaining or providing certificates of insurance to best protect your business.