Certificate of Liability Insurance: What Is It, and Who Needs It?

If you provide goods or services to larger organizations, government agencies or any companies you may eventually be asked to provide a certificate of liability insurance. Understanding this document is important if you want to pursue larger clients.

What Is a Certificate of Liability Insurance?

A certificate of liability insurance is proof your company has coverage and offers a summary of details about your policies, including limits and benefits. Usually on one sheet of paper, this document includes specifics about your policy, the insured party, any expiration dates, policy numbers, the names of the plans and other details.

Also, many of these certificates state that in the case of cancellation, any holders of the document will be informed about the cancellation. This means the certificate can assure a client or vendor that they will be working with a company who may be without insurance. A client may be asked to be listed as a certificate holder for this reason.

Who Needs A Certificate of Insurance?

If you are a company or provider of services or products, you may be required to submit a Certificate of Insurance for a new project, especially if you are working with a larger client or business. For example, tech companies may need this documentation to work with a government agency or contractor. Contractors, vendors and service providers who get job offers with any large organization may be asked to supply a certificate of liability insurance.

If you are asked for proof of insurance for a project, bid or work situation, you may also want a certificate of liability insurance. While your whole policy can also act as proof of insurance, certificates of liability insurance are generally easier to send and share because they are only one page.

What Is the Point of a Certificate of Insurance?

A certificate of insurance shows an organization that you have the liability coverage to work with that company or client, without them having to worry about issues of liability stemming from the work performed. In some cases, larger organizations have insurance requirements. They may demand service providers and vendors have specific types of coverage and minimum limits. In these situations, certificates of liability insurance offer proof that all insurance prerequisites have been met.

In cases where liability is a big concern or where losses may be substantial, organizations and companies may insist on certificates of liability insurance to ensure those performing the work or offering services are covered and will not cause significant liability risks to the organization.

Where Can I Get a Certificate of Liability Insurance?

If you need this type of documentation, contact Kokkoris Insurance Services or call us at 718-728-0606. We can consult with you to help you find the right insurance for your budget and needs.

We can also get you certificates of liability insurance within 30 minutes to one hour. We make requesting your certificates of liability insurance easier and simpler, so you don’t have to waste time getting the documentation you need. This way, you can provide insurance proof as soon as it’s requested, helping you represent yourself as the professional you are.