Q: What is a Certificate of Liability Insurance?
A: A Certificate of Liability Insurance acts as proof of coverage. It is a single-page document that lists the type of liability coverage you have and other pertinent policy information. You may need to provide your certificate to sign client contracts that require a certain amount and type of liability insurance. If you have commercial liability insurance, you can contact your insurance agent and request a certificate. Or if you purchase insurance from insureon, you can simply log into your customer portal and download the form yourself.
Certificate of Liability Insurance: The Origin Story
Once upon a time, the insurance world was chaos. Every company did its own thing, and it was a post-apocalyptic landscape of paperwork. Even the most seasoned professional would have to muddle through pages of legalese to find important coverage information.
Then, in the 1970s, the Association for Cooperative Operations Research and Development (ACORD) led the industry out of the dark. ACORD standardized insurance forms so that information could be presented in a uniform way. This may sound like a small detail, but the tweak saved folks from wasting a lot of time.
The Certificate of Liability Insurance form was one of ACORD’s innovations. Thanks to standardization, it’s quick and easy to locate coverage details on this form. Keep in mind that a certificate of insurance is not the same thing as an insurance policy. Rather, think of it as a concise summary of your policy.
If you have questions about the Certificate of Liability Insurance, you can always contact an insureon agent for help at 800.688.1984.
Navigating a Certificate of Liability Insurance Form
A certificate of insurance distills a metric ton of policy information down to a convenient sheet of paper. It outlines…
- Your name and contact information.
- The agent who issued the certificate.
- Policy numbers.
- Effective and expiration dates.
- Types of policies.
- Policy limits.
- Key coverage details.
- Cancellation notice details.
As you can see, this form comes in handy if a client needs proof that your small business has the insurance it claims to have. They can quickly scan the document for the policies and coverage limits they require. Also, they can be informed if you cancel your policies before they expire.
How Your Certificate Can Help You Win Friends and Influence Clients
Certificates of insurance reassure clients that your small business has the financial means to take care of its obligations. If, for example, your business breaches a contractual agreement, your client wants a way to recoup their losses. Your certificate proves that you have the ability to compensate them.
And because no client likes to gamble with their hard-earned dollars, they may wish to only work with businesses that offer this kind of assurance. That means having adequate liability coverage and proof of insurance can…
- Help distinguish your business from competitors. Not every small business has insurance, which can be a benchmark of professionalism to your clients.
- Allow you to sign client contracts quickly. If you already have coverage, you just need to print off your certificate. That way, you won’t have to worry about missing out on a big gig because of bureaucratic delays.
Need a Certificate of Liability Insurance to land that client contract? You can get one when you purchase an insurance policy. To get covered, fill out an online insurance application today. After you have a policy, you can download and print off your certificate for free by logging into your insureon customer account.