How to Read a Certificate of Insurance Form

What to Look Out for When Reading a Certificate of Insurance Form

As a business owner, you may work with other businesses. When they hire your company, they want to know that working with you won’t increase their legal liability. Similarly, when you hire vendors or contractors, you want to ensure that hiring them won’t hurt you financially. Both parties can have peace of mind by requesting a certificate of liability insurance form.

A certificate of insurance (COI) is a document that provides evidence that certain types of insurance coverages and limits have been purchased by the party required to provide the certificate. Note that this document is different than just showing the other company your commercial insurance policy. A COI is proof that you have insurance. If you wish to provide coverage to the certificate holder, you must make your customer an additional insured on your policy.

Once you receive the COI, here’s what to look for:

  • Make sure the business name on the form matches the vendor you thought you were hiring
  • Check the policy effective dates to confirm that the coverage is current and doesn’t expire before the project is complete
  • Check the policy limits to ensure adequate coverage
  • Ask to be named as an additional insured for the particular project or contract at issue

Ask for a certificate of insurance may seem like a small and trivial item, but making sure there is proper coverage in place can save you from headaches down the road. When you’re ready to find reliable insurance for your business, the team at Premier Risk Insurance is here to help! We serve Long Island and neighboring cities in New York – Contact us to get started today.