Certificate of Insurance

“A certificate of insurance is a document issued by or on behalf
of an insurance company to a third party who has not contracted with
the insurer to purchase an insurance policy. The most common type
of certificate is that provided for informational purposes to advise
a third party of the existence and amount of insurance issued to the
named insured.” (Allan D. Windt, Insurance Claims and Disputes,4th ed., 2001)

Such informational certificates are usually issued in conjunction with a contractual relationship between a third party and the named insured,
requiring that the named insured have a particular amount and type
of insurance. Such requirements are particularly common in construction contracts, government entities, and corporations.

In addition to describing the insurance available the named insured, a certificate may also convey information that the certificate holder is an additional insured under the policy issued to the named insured, thus giving the certificate holder some interest in the policy itself.

According to Black’s Law, a certificate of insurance is a “document evidencing the fact that an insurance policy has been written and includes a statement of the coverage of the policy in general terms.” Certificates are simply a snapshot of basic policy coverages and limits at the time of issuance of the certificate. Certificates cannot modify coverages or change the terms of the insurance contract.

Please contact us if you have any questions about Certificates of Insurance, when you should ask for them, or when you are asked to provide one.