What is a Certificate of Liability Insurance?

Here’s what small businesses should know about certificates of liability insurance.

Commercial general liability insurance protects you in the event that your business is held responsible for third-party injuries or damages.  Some businesses are actually required to have this type of insurance and show proof of coverage.  A certificate of liability insurance (COI) serves as this proof.  Here’s what you need to know about certificates of liability insurance.

What is a certificate of liability insurance?

A certificate of liability insurance is a one-page document that provides policy details about your business’s liability insurance.  It verifies that you have the general liability, professional liability, or business owners policy that you claim to.  Some of the details included in your COI are the types and limits of your coverage, your insurance company, your policy number, the name insured, and the policy’s effective dates.

Why do I need a COI?

Business are often required to show a COI in order to win contracts.  Many companies will only hire contractors when they produce a COI because they do not want to be liable for damages, injuries, or substandard work.

How can I get a COI?

COIs are issued along with your liability policies and should be one of the documents you receive when you purchase insurance for your business.

My client is asking to be added to my COI?

It’s quite common for a client to request to be added to your COI as a certificate holder.  Adding them to your COI doesn’t give them any legal rights under your insurance, it simply protects them from having to assume any of the risk associated with your business’s work.

This is what you need to know about certificates of liability insurance.  Do you have additional questions regarding your business’s insurance?  Then turn to the professional team at PMC Insurance Group.   Contact us today to learn more about getting competitive coverage for your small business clients.

By PMC Insurance Group

Since 1996, PMC Insurance Group has worked to help independent agents grow their client base by offering workers' compensation solutions for a wide array of businesses. As one of the most distinguished workers' compensation wholesalers in the country, we have the tools and resources to help you create coverage programs for both small businesses and large accounts.