Certificates of Errors and Omissions Insurance: What They Do
Just like any insurance policy, Errors and Omissions Insurance (i.e., Professional Liability Insurance or Malpractice Insurance) involves a lot of moving parts. One of those pieces is the Certificate of Liability Insurance. What does it all mean for your small business?
To help you make sense of your Certificate of Liability Insurance, we'll explore the certificate's components and explain how this simple document can lead to more business opportunities.
Certificates of Liability Insurance Explained
A Certificate of Liability Insurance is, in short, a document that certifies your company has E&O Insurance. (Here is a sample Certificate of Liability Insurance for your reference.) It is not a legal document like your policy. It's more like an insurance card you'd carry in your wallet.
But unlike an insurance card, this document gives you a concise rundown of your E&O coverage (all on one page). The information provided on the Certificate of Liability Insurance falls into the following categories:
- General info about you and your insurers. The top of the certificate identifies your business as the insured along with your business name and contact information. It also lists the insurance companies providing your coverage.
- Coverage information. The main section of the certificate outlines your business's insurance coverages, including your policy limits, deductibles, policy numbers, and the policies' effective dates.
- Description of operations. Your certificate may also specify the work your business does. For E&O Insurance, this defines the scope of your professional liability coverage (e.g., an architect is covered for designing buildings, but not for providing legal advice).
What Are the Benefits of Having a Certificate of Liability Insurance?
A Certificate of Liability Insurance is more than just a handy reference — it is a key to landing lucrative business opportunities. For example, your certificate can help you…
- Secure contracts and clients. A Certificate of Liability Insurance proves to potential clients and business partners that you have E&O coverage. Certain clients will require proof of insurance before contracting with you, and a certificate is an efficient and easy way to accomplish that. You can fax or email the document to a client in seconds.
- Provide clients with peace of mind. At the bottom of your certificate is a box specifying the "Certificate Holder." If you arranged to have your client made an official Certificate Holder, they will receive notification from your insurer if you cancel your policy or allow it to lapse. Your clients will appreciate this guarantee of your insured status.
How Do I Get a Certificate of Liability Insurance?
The only way to obtain a Certificate of Liability Insurance is to have an active insurance policy. If you don't have E and O Insurance, first you'll need to fill out an online insurance application. An insureon agent will personally compile your competitive insurance quotes and send them right to your inbox.
From there, it's a matter of choosing the E&O policy that strikes your fancy. After your agent takes you from quote to bind, you'll receive a Certificate of Liability Insurance. The best part? This painless process usually takes only a business day to complete.
If you already have an active Errors & Omissions policy, contact your insureon agent, who can send you a certificate promptly.