What Does a Certificate of Insurance Show?
What Information Appears on a Certificate of Insurance?
A certificate summarizes key insurance information so another organization can review the policies and limits that are currently shown for the insured business.
Policy Information
A certificate may show the insurance company, policy number, policy type, effective date, expiration date, and the named insured.
Liability Limits
General Liability limits may be displayed along with other policy information such as Commercial Auto, Workers’ Compensation, Umbrella, or other insurance when applicable.
Certificate Holder
The organization requesting proof of insurance may be listed as the certificate holder, usually with its name and mailing address.
A Certificate Holder Is Not Automatically an Additional Insured
This is one of the most important distinctions to understand. Being listed on a certificate does not necessarily provide the organization with insured status under the policy.
Certificate Holder
A certificate holder is generally the organization receiving the certificate as evidence that insurance exists.
Additional Insured
An additional insured may receive certain liability protection under the policy when supported by the applicable endorsement or policy provision.
Description of Operations
The certificate may include project, location, contract, or endorsement information, but the actual policy and endorsements control coverage.
Contract Requirements
A contract may require more than a certificate, such as specific additional-insured wording, primary and noncontributory status, waiver of subrogation, or certain limits.
What Should You Check Before Sending a Certificate?
A certificate request should be compared with the contract and the actual policy so the document accurately reflects the insurance that is in place.
Verify the Certificate Holder
Confirm the requesting organization’s exact legal name, address, project, location, or other identifying information.
Compare Required Limits
Review the contract’s insurance requirements against the limits currently shown on the applicable policies.
Confirm Endorsements
If additional insured, waiver of subrogation, or other endorsements are required, confirm that the policy actually provides the requested wording.
Check Policy Dates
Make sure the policy is active for the relevant work period and review renewal requirements when a contract extends beyond the expiration date.
Do Your Insurance Documents Match What Your Customer Is Requesting?
Best Formula Insurance can help businesses review General Liability coverage, Certificates of Insurance, certificate holders, additional-insured requirements, liability limits, and related policy endorsements.