You have just started a job and the party that hired you asks you for a Certificate of Insurance. The most important question you probably have is what is a Certificate of Insurance.
What Is a Certificate of Insurance?
Almost all Certificates of Insurance are written on an industry standard form known as the ACORD 25. ACORD is the acronym for the Association for Cooperative Operations Research and Development. It is a non-profit organization that provides the insurance industry with standard forms that all insurance companies use. There are Four main parts to a Certificate of Insurance.
The first part, shown above, shows the name of the Insurance Agent who wrote the policy along with the agent’s contact information. It also shows the name of the insured. Finally, it lists the various insurance companies that the insured has policies with. It is very common for General Liability, Workers Compensation Insurance, Umbrella or Excess Liability Insurance and Commercial Auto Insurance to be written with different insurance companies.
The second part of the Certificate of Insurance, shown above, lists the type of insurance. It contains the policy number along with the effective date of the policy along with the policies expiration date. Finally, it lists the coverage limits of the policy. These limits usually vary greatly for the type of loss covered.
The third part is a section where more detail about your business is located. In certain situations, an additional insured (party you are doing work for) may ask for this section to be filled out. It will name the location where the work is going to be performed and occasionally the type of work to be done. The VIN Numbers of any vehicles insured may also be listed here. In addition, sometimes various Government entities will require specific language to be written in this space before any permits or the like are issued.
The fourth and final part is the Certificate Holder or named insured. This is the party that requested you get the Certificate of Insurance. To sum it all up a certificate of insurance boils down your multiple insurance policies onto one paid. It allows for your clients and customers to see at a glance your insurance coverages and limits, rather than having to read through hundreds of pages of various policy documents.
At Contractors Liability we have a separate department who’s only job is to get you your Certificates of Insurance in a timely manner. So fill out a quote form or give one of our agents a call at (866) 225-1950 and let us take all the worry out of obtaining a Certificate of Insurance.