An ACORD certificate of liability insurance is a document that proves you have liability insurance coverage.
An ACORD certificate of liability insurance – also known as a Certificate of Insurance (COI) – is a one-page document that proves you have business liability insurance coverage. It summarizes the key elements of your policy or multiple policies, assuring prospects and customers that your business is protected from common risks. ACORD is Association for Cooperative Operations Research and Development that developed this standard form.
Insurance companies provide certificates of liability insurance for a variety of small business insurance policies, including:
Small business owners who purchase a policy with Insureon can access their certificate of insurance online or with a mobile device immediately after purchasing a policy.
If you don’t have a policy, simply complete Insureon’s easy online application. Our licensed insurance agents, who have worked with thousands of small businesses, can help you get the right insurance coverage at the best price, often the same day you contact us.
No business owner wants to get sued, especially if it’s because a vendor caused property damage or bodily injury. For this reason, companies want to know the firms they hire have their own liability insurance that would provide coverage after property damage or an injury.
For example, let’s say you own a carpentry firm. You recently received a verbal agreement to do a job for a general contractor who builds luxury homes.
However, before signing a contract, the contractor asks for a copy of your certificate of liability insurance. He requests it because he doesn’t want to be held liable if you or one of your employees causes property damage or injures a third party while working on his construction site.
Giving him your COI shows you are financially responsible and fully insured in case something goes wrong. After reviewing your certificate of liability insurance, the contractor signs the contract.
A certificate of insurance includes:
Download an example of an ACORD certificate of liability insurance [PDF].
For much of the twentieth century, insurance companies basically took their own unique approach to policy forms. However, this confused agents, brokers, and customers and made life difficult for insurers.
Tired of the chaos, companies banded together in the 1970s to form the Association for Cooperative Operations Research and Development (ACORD). They authorized ACORD to develop standard forms that everyone involved in the insurance industry could use. This included an ACORD certificate of insurance.
Thanks to ACORD’s pioneering work, America’s small business owners today can quickly and easily review their insurance and prove to their customers and business partners that they are financially responsible.
Insureon helps sole proprietors and small business owners compare commercial insurance quotes with one easy online application. Start an application today to protect your business.