What is a Certificate of Insurance?

A Certificate of Insurance is a document that certifies that insurance coverage is in place. This certificate serves as proof to third parties, such as clients or other entities, that the insured has valid insurance policies. It typically outlines important information, such as the type of coverage, the effective dates, and any limits or exclusions specific to the policy. The Certificate is often requested in situations where a business or individual wants to show that they have liability insurance or other types of coverage required for a contract or agreement.

The distinction between this certificate and a formal insurance policy document is that the policy is a comprehensive legal contract detailing the terms and conditions of the coverage, while a Certificate of Insurance is a summarized verification meant for external use. Additionally, it is not a type of endorsement, which modifies the terms of the existing insurance policy, nor is it a claim form, which is used to report an incident for which a policy holder seeks reimbursement or compensation.