When you work with a client or another third-party, you may be asked for proof of insurance. Potential clients may ask you for proof of insurance for a number of reasons, but generally they want to know you have the proper coverage and what risks you’re insured for.
A certificate of insurance is the best way to provide proof of insurance and demonstrate that you have the coverage they’re looking for.
You may need to provide proof of insurance for a variety of situations, including:
- When signing a contract with a new client or contractor.
- When signing a lease for property or equipment.
What is a Certificate of Insurance?
A certificate of insurance is a summary of your coverage issued by your insurance company. It states that you have been insured and for which general risks. The document will name you (the insured), the insurance company issuing the policy, the type of policy, and the effective period . The certificate won’t list all of your liability coverage and any exceptions in detail, it’s merely intended to provide a summary.
This three-step guide can help you get the information you need to get your certificate to the requester promptly.
Step #1: Know the Minimum Requirements
Before requesting a certificate of insurance from your insurance provider, it’s important to understand the motivation behind the request. Certain third-parties may require that you have a certain amount of coverage before they can offer you a job. For example, a business may need you to have a liability policy limit of $1,000,000 before signing a contract with you to remodel a large commercial building. Get the minimum requirements in writing so that you know what you need for the job.
Step #2: Know What Your Liability Insurance Covers
If you’re concerned about whether or not you meet the minimum insurance requirements set by the third-party in question, review your policies or contact your insurance agent. You’ll want to make sure you have all of the coverage you need, and that your policy limits meet the requirements. If you don’t have the required coverage, you’ll have to decide if it’s worth expanding your insurance for the job. If you do decide to purchase more coverage, don’t hesitate to contact your insurance agent to discuss your options.
Step #3: Request Your Certificate of Insurance
Once you understand the minimum requirements and are sure you meet them, request your certificate. Your insurance company should be able to get the certificate fairly quickly. At Citizens General, we can issue your certificate the same day if you get your request in before 2PM PST.
You’ll need to provide your insurance company with certain information about yourself (the insured) and the third-party (the certificate holder).
- Your contact information
- Your policy number
- The certificate holder’s name
- The certificate holder’s contact information
- The contract in question
- The information of any other individuals or companies that need to be listed on the certificate
- The job site and project information
At some point, you’ll need to provide a client or another third-party with proof of insurance. When that happens, a certificate of insurance is the best way for you to prove that you’re insured and have the coverage you say you do. At Citizens, we make sure you can get your certificate of insurance quickly and easily, so you can get to work with no delay.