A Certificate of Insurance (COI): What Is It? When You Require One
A Certificate of Insurance (COI): What Is It?
An insurance firm or broker may issue a certificate of insurance (COI). The COI enumerates the main features and terms of an insurance policy and confirms its existence. A typical COI, for instance, includes the policyholder’s name, the policy’s effective date, the coverage type, the policy limits, and other pertinent information.
Without a COI, a business or contractor would struggle to attract clients since they are unlikely to take on the risk of any expenses that the provider or contractor may create.
The Operation of Certificates of Insurance (COI)
Certificates of insurance (COIs) are utilized in most commercial environments where liability and large losses are concerns and a COI is necessary. Proof of insurance coverage is provided by a certificate of insurance.
Contractors and small company owners frequently carry a certificate of insurance (COI) attesting to their insurance coverage against responsibility for accidents or injuries sustained on the job. An insurance certificate is often provided by the insurance provider when you buy liability insurance.
A contractor or company owner may find it challenging to secure contracts without a COI. The client needs to know that a firm owner is in charge because many people and businesses utilize contractors.
Verifying an Insurance Certificate
Usually, a client will ask the insurance provider for a certificate instead than the contractor or business owner. The customer should verify that the insured’s name on the certificate exactly matches the name of the business or contractor they are thinking about hiring.
Specifications of an Insurance Certificate
Separate sections for general, auto, umbrella, and workers’ compensation liability coverage are included on insurance certificates. The policyholder, individual, or business listed on the certificate as being protected by the insurance is referred to as the “insured.”
The certificate contains the policyholder’s name, postal address, and a description of the operations the insured performs in addition to the coverage levels. Along with the insurance agent’s or the agency’s contact person’s contact details, the address of the issuing insurance company is included. All names and contact details are provided if several insurance firms are involved.