What is a Certificate of Insurance?
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  • Simmy

What is a Certificate of Insurance?


Here's a situation that may sound familiar:

You and your contractor company bid on a project. Your company is shortlisted in the vendor selection process: that's exciting!

And then your employer sends a set of Insurance Requirements.

Regardless of whether your a 1-man IT Contractor sole proprietor, a 100 employee plumbing corporation, or a interior design firm LLC startup, purchasing insurance may seem like a daunting annoyance. However, we argue that policy may serve you, your employers, and your clients in the event of a loss. Also, obtaining commercial policies can be a straightforward process when you partner with the right agency.

In this blog, we'll address the following:

  • What is a Certificate of Insurance and why do I need one?

  • How do I get a Certificate of Insurance?

Contractor on job site

A Certificate of Insurance (COI) is a document that shows proof of insurance coverage. COIs display the name of the owner (insured), limits of insurance, deductibles, insurance carriers, and terms of the policies.

In order for General Contractors or Clients to be protected by the liability of your company, they mandate that insurance coverage is purchased. This insurance coverage is summarized in a standardized Certificate of Insurance, using forms such as an Acord 25.

Certificate of Liability Insurance

Obtaining Certificates of Insurance is a subsequent step to obtaining the required insurance policy. Simply ask your insurance agent or Fenix Risk Management Adviser to issue a COI.

The more difficult task is obtaining the right insurance policy. Complications with commercial insurance policies include:

  • Eligibility of your company's operations

  • Additional Insureds & Waiver of Subrogation

  • Endorsements describing specific claims scenarios

  • Deadlines for delivering COIs to GCs and clients

Contact an Adviser to guide you through obtaining your required insurance policies.

 

Simmy is an adviser at Fenix Risk Management

Fenix Risk Management is an independent insurance agency proudly serving families & businesses in Georgia, Alabama, North Carolina, South Carolina, Tennessee, and Florida.

Simmy is an adviser at Fenix Risk Management, helping businesses navigate insurance requirements.

Note: the opinions expressed in this blog are that of the author, not of any other individual or organization referenced.

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