Certificates Of Business Insurance - What Is The Purpose And Why DO I Need This ?
Certificate of insurance is basically a proof of insurance. There are many types of commercial insurance certificates. The most common one is a certificate of liability insurance. Certificates are usually requested by landlords, general contractors, property owners or homeowners where a contractor is scheduled to work. This is the basic type that shows the business is insured, listing the limits of the purchased coverage.
Additionally a certificate of insurance may have certain items listed on it, such as a certificate holder's name, additional insured's name, waiver of subrogation and so on. Depending on the type of policy purchased, the certificate of insurance (COI) should reflect the policy holders information on it and if needed additional insured's information as well.
The most common and industry accepted certificates are issued on Acord forms.
See our samples below.
How To Get A Certificate Of Insurance
In Order to obtain a certificate of insurance, first you need to purchase an insurance policy. After a binder is issued, you can request your certificate from your agent or broker or sometimes directly thru your insurance carrier. Some brokers require a written request to issue certificates, the turnaround time depends on the party issuing the certificate. BISU Insurance issues certificates the same day, usually within an hour (during normal business hours).
Is There A Charge Associated With Certificates?
Depending on a type of policy you have, there may be a charge involved in obtaining an insurance certificate, however basic certificates are usually free. If you request a special endorsement, however such as waiver of subrogation, Primary And Non Contributory Wording etc. etc. there may be a fee associated in getting the COI with these additions. Some policies we write, for example most artisan contractor policies, come with blanket additional insured stipulations, which means, you get unlimited additional insured certificates for free.