What Is A Certificate of Insurance? What it Isn’t.
A Certificate of Insurance is a representation of coverage under an insurance policy or policies, as it exits at the time the Certificate of Insurance (COI) was issued. A COI is not an insurance policy and can’t be used to expand or amend coverage. It is not an agreement between you and your client. It isn’t signed by either of you. It is signed by the insurance agent certifying that the coverage listed is the coverage that is in place on the day the COI was provided.
The ACORD 25 is the template that the COI is written on today. It is a matter of information only and confers no rights upon the certificate holder. The COI does not affirmatively or negatively amend, extend or alter the coverage afforded by the policies listed on the COI.
The problem lies with the perceived purpose of an ACORD 25 Certificate of Liability Insurance. It is simply an assurance of coverage on that date it was provided. Other than that it means nothing! It is not intended to confirm anything other than information initially. Many times a certificate requester will ask to have the certificate say specific things in the description of operations box as if this will somehow be an agreement to terms requested. Your legal contract or agreement between you and your client and what you agreed upon is really what matters and what will be looked at in the case of claim in a court of law.
If you have additional questions about Certificates of Insurance please contact your agent or email us at puimich@profunderwriters.com To request a certificate please click here