Demystifying Certificates Of Liability Insurance
As a business owner, it's important to protect yourself and your customers from potential damages and accidents. One way to do this is by having liability insurance. A certificate of liability insurance (COI) is a document that proves you have this coverage. However, reading and understanding a COI can be confusing. In this article, we'll break down the different sections and terms of a COI to help you navigate this important document.
General Information
The first section of a COI contains general information about the policy. This includes the name of the insured (the business or individual covered by the policy), the name of the insurance company, and the policy number. It will also list the effective date and expiration date of the policy, as well as the types of coverage included (such as general liability or professional liability). Finally, this section will indicate the limits of liability coverage, which is the maximum amount the insurance company will pay out for a claim.
Additional Insureds
The next section of a COI is the Additional Insured section. This lists any other parties that are covered by the policy, in addition to the insured. Common examples of additional insureds include landlords, vendors, or subcontractors. By adding these parties to the policy, they are protected from any damages or accidents that may occur as a result of the insured's work. It's important to note that adding an additional insured may come with an additional cost, so make sure to discuss this with your insurance provider.
Certificate Holder
The final section of a COI is the Certificate Holder section. This lists the party that requested the COI, and is typically a client or customer of the insured. The certificate holder is not covered by the policy, but is provided with proof of the insured's coverage. This section will also indicate whether the certificate holder is an additional insured or just a certificate holder.
Why It's Important
Knowing how to read and understand a COI is essential for any business owner. It ensures that you have the proper coverage in place and that your clients are protected as well. Additionally, some clients may require a COI before doing business with you, so having a clear understanding of this document can help you secure more contracts and clients. By taking the time to understand your COI, you can have peace of mind knowing that you're properly covered and protected.
| Section | Information Provided |
| General Information | Name of insured, insurance company, policy number, effective and expiration dates, types of coverage, limits of liability coverage |
| Additional Insureds | Other parties covered by the policy |
| Certificate Holder | Party that requested the COI and whether they are an additional insured or simply a certificate holder |
Post a Comment for "Demystifying Certificates Of Liability Insurance"