If your business is required to have liability insurance, you might be asked to provide a certificate of liability insurance. Depending on the nature of your business and your location, you might be required to carry liability insurance. General liability insurance covers your business for accidental property damage and bodily injuries caused to others. <\/p>
It also covers problems such as reputational harm, advertising injury, and copyright infringement. And even if you are not required to have that coverage, a general liability certificate of insurance can help allay client concerns.<\/p>
To get a certificate of liability insurance, you\u2019ll first need to have a business insurance policy. Almost all businesses should have general liability insurance. You can also request a certificate of liability from vendors you plan to work with to verify their coverage.<\/p>
A Certificate of Insurance (COI), also known as a Certificate of Liability Insurance, is proof of an active, valid insurance policy and serves as verification to your vendors, customers, or landlords that your business is indeed insured. <\/p>
A COI for most insurance policies is no longer than one page. It lists the name of the insurance company, the types of coverage your business has, its limits, policy numbers, and effective and expiration dates. Potential clients may request that you have insurance coverage in place for which a certificate of business insurance can be used to demonstrate compliance with this request.<\/p>
Typically, contractors and clients require insurance that grants protection against liability for workplace accidents or injuries to conduct business. A certificate of insurance is important for business because the COI evidences that the insurance is in force.<\/p>
A certificate of liability insurance is also known as an ACORD 25 form. Most insurance professionals use a template developed by the Association for Cooperative Operations Research and Development (ACORD) to issue a liability Certificate of Insurance (COI). This is why you\u2019ll often hear a COI, in insurance terms, referred to as an ACORD certificate or ACORD 25 form.<\/p>
Small businesses may want a general liability insurance certificate to:<\/p>
A certificate of liability insurance includes basic information about your general liability insurance policy, including:<\/p>
A certificate of liability insurance includes:<\/p>
The form should include information from your general liability insurance policy. If you have other types of liability protection \u2014 like commercial auto insurance, workers\u2019 compensation insurance and excess liability insurance \u2014 your certificate of liability insurance may show those policy details, too.<\/p>
You should be able to access certificates of insurance for all of your business insurance policies. In general, these documents include the same types of information that certificates of liability insurance do, like your insurance company\u2019s name, your policy numbers, coverage limits and the names of additional insureds.<\/p>
The benefits of COIs extend to other types of businesses as well, including small business owners, freelancers, and solopreneurs. For example, if you\u2019re an IT consultant who provides web development or monitoring services, your clients want to know that they\u2019re protected from potential losses due to site downtime or a server crash. Your certificate of business insurance can put their minds at ease.<\/p>
Basically, if there\u2019s potential for something to go wrong during the course of your work with a client \u2014 whether that \u201csomething\u201d is physical injury, property damage, or another type of loss \u2014 you\u2019ll want to get an insurance policy (and the COI to prove it).<\/p>
Almost all businesses that utilize contractors will require that the contractor provide them with a liability insurance certificate. While less expected with other transactions, such as between service businesses, pre-empting the ask and providing your prospective client with a COI during the sales process can do much to gain their trust and earn their business. It\u2019s a clear indicator that you take your business seriously and helps to establish yourself as a professional.<\/p>
In fact, it\u2019s a common practice for clients to ask to be added as an Additional Insured to your policy. This ensures they\u2019re covered if they are sued as a result of damage or injury you may cause. A COI can also display their status as an Additional Insured on your policy.<\/p>
You can request a certificate of liability insurance if you have a general liability insurance policy, though you typically receive a certificate of liability insurance once your coverage begins. If you lose track of your certificate or need another copy, there are two ways to get one:<\/p>
Any business that wants to show it has the proper coverage can benefit from having a general liability insurance certificate.<\/p>
Professions that typically buy general liability insurance coverage include:<\/p>
In general, business insurance providers offer certificates of liability insurance for free to existing policyholders.<\/p>
You will need to purchase a policy to have access to a COI, and the cost of business insurance can vary widely depending on what your company does, how many employees you have, whether you\u2019ve filed claims in the past and other factors. Getting quotes from several different insurance companies can help you find the best coverage at the best price.<\/p>
Having a certificate of insurance is important for both client and vendor relations. Potential clients may ask you for your liability insurance certificate before conducting business with you and, if you can\u2019t produce one, it may lead to loss of business and damaged rapport. Clients and vendors would like to enter a business relationship in which both parties have proper coverage in order to instill confidence in the partnership and mitigate risks. In order to obtain a certificate of liability insurance, you must have valid and current insurance placed in your company name.<\/p>
A COI is issued by your insurer or its representative and is often included in the package of documents you receive upon purchasing your policy. This one-page document summarizes the key details of your business insurance policy, including:<\/p>
If you have a business liability insurance policy, you may already have a certificate of liability insurance in your policy paperwork.<\/p>
Some providers, including biBERK and Thimble, offer instant digital certificates of insurance that you can share electronically with your landlord, clients or subcontractors.<\/p>
Other business insurance providers require you to request a copy online or over the phone, but they should typically be able to provide your COI in a matter of hours.<\/p>