Understanding the information offered in a certificate of insurance.

When your company hires a contractor to work on your behalf, you need to know that the contractor will be held responsible for any issues that arise with their work.  This means verifying that they have the appropriate insurance safeguards in place.  You can check a contractor’s insurance coverage by requesting a certificate insurance form from them.  But what exactly is this form and what information should it contain?  Here’s what you need to know.

What is a Certificate of Insurance?

A certificate of insurance form is a document that businesses use to show proof of insurance.  This document lists the business’s liability insurance policies, their coverage limits, and the dates during which their policies are effective.  When a contractor is able to produce a certificate of insurance, it offers you peace of mind knowing that they have enough coverage to cover any issues related to their work.  This ensures that your business will not be responsible for such claims.

What’s on a Certificate of Insurance?

While certificates of insurance can take different formats depending on the company that issues them, the same kind of information is typically included on all forms.  When reading certificates of insurance, look for the following:

  • The date that the form was issued.
  • A disclaimer summarizing the nature of the certificate.
  • The agent or broker who issued the certificate.
  • The name(s) and address(es) of the business or people covered by the policy.
  • A list of the insured’s commercial coverages. Usually, this includes general liability, commercial auto, commercial umbrella, and workers compensation insurance.  This section will also show policy numbers, the dates that the policies are effective, and the expiry dates of the policies.
  • All the companies providing the stated coverage.
  • The dollar coverage limit that each policy provides broken down by coverage subtype.
  • A spot where additional insureds can be listed.
  • The person or company that the certificate was issued to.
  • A notice that states that the certificate holder will be notified if the insured cancels a policy before the expiry date.
  • The signature of the agent, broker, or a representative verifying the legitimacy of the certificate.

This is what you need to know about certificates of insurance.  Do you have additional questions about your commercial coverage?  If so, then contact the experts at Scautub Agency in Scotia, New York.  We are ready to assist you with all your business insurance needs today.