A Certificate of Insurance is an important legal document.
It establishes a legally enforceable obligation between the Certificateholder and your insurance company. This is why your vendors, landlords, lessors, government agencies and other organizations and persons with whom you do business insist in obtaining one. It is also why insurance carriers and your insurance representatives are diligent in properly issuing your Certificate. The obligation on the part of the insurance company is to:
- provide evidence of current and valid insurance the Certificateholder; and
- notify the Certificateholder within the time period on the Certificate if your coverage is cancelled or reduced.
The failure of the carrier to meet these obligations may extend insurance coverage to the Certificateholder (but not to you) to the extent of the Certificateholder’s legal interest in your business. It may also impose legal liability to your insurance agent or broker. Lax procedures, inadequate documentation and improperly completed Certificates cost insurance carriers millions of dollars in claims each year. As such, we as insurance professionals are very careful to follow proper procedures in completing Certificates. We appreciate your patience and cooperation in this process. For future requests for a Certificate of Liability Insurance or Evidence of Property Insurance, many of our clients have found the attached form useful. I hope you find it useful as well.
We endeavor to handle all of your requests within 24 hours of receipt.