What Exactly Is A Certificate Of Insurance?
COI is a document issued by an insurance company that proves that a business or person has the right insurance coverage. It lists your policy types, limits, and deductibles. It is important to note that a COI does not constitute an actual insurance policy; it simply provides proof that one exists.
Reasons Why You Need Certificates Of Insurance If you run a business, you should have a COI. Here are some reasons you should have Certificates of insurance.
- Certificates of insurance provide proof that a policyholder has the necessary coverage to protect them from financial loss in case of a claim or lawsuit.
- They provide evidence to third parties, such as clients or vendors, that the policyholder is insured and can pay any claims that may be filed against them.
- They help to protect the policyholder from being held liable for damages caused by their negligence or other wrongful acts.
- COI can help to reduce the risk of litigation by providing evidence that the policyholder has taken steps to protect themselves against potential losses.
How Do I Get a COI?
You need to contact your provider to get a certificate of insurance. They will provide you with the necessary paperwork to complete and submit. Depending on your coverage, you may need to provide information, such as your business name, activities, and entities or individuals that need to be named on the certificate. Once all documents are submitted, your insurance provider will issue a COI.
