Certificate of Insurance Procedures

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A certificate of insurance is, for all intents and purposes, a contract. Learn about certificates of insurance procedures with help from an insurance professional in this free video clip.

Part of the Video Series: Insurance Information
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Video Transcript

Hi, this is David Sumpter, commercial insurance specialist with Wateridge Insurance in San Diego. Today, we're going to talk about certificates of insurance. First thing we should talk about is what is a certificate of insurance? A certificate of insurance is a contract. When you enter into a contract with another entity, they're asking you to give them a certificate of insurance that proves that you have coverage. The certificate of insurance lists the carriers you do business with, the effective dates of your coverage, and the limits that you're provided by the carrier. What does a certificate of insurance really do? In the event of a claim where you and the entity that you've entered into a contract with are brought into court together, a certificate of insurance tells that other entity that you're going to protect them. Your insurance carrier is now responsible for protecting you and this other entity. When you are asked for a certificate of insurance by another entity, you're giving away parts of your policy. So, you don't want to be too glad-handed by giving that out to everybody. Make sure that you have an insurance contract, an insurance policy, that provides for any certificate of insurance that you might run into. Any contract that you may enter into with another entity could have different wording, so you want the broadest possible coverage. Check with your broker. Your broker can shop among different carriers that'll provide the coverage that you need, and the special terms that a certificate of insurance might need. So, again, check with your broker. We'll walk you through it. I'm David Sumpter, commercial insurance specialist with Wateridge Insurance.


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