What Is A Certificate?

1
What Is A Certificate?

• A certificate of insurance is a document issued
  by or on behalf of an insurance company to a
  third party who has not contracted with the
  insurer to purchase an insurance policy
• A business agrees to provide evidence of certain
  coverages, such as General Liability, Business
  Auto Liability or Workers Compensation due to a
  business agreement between themselves and another
  party

2
Why Are Certificates Used?
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ACORD Certificate of Liability Insurance
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Policy Contract Between Insurer and Insured
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Primary Areas of Concern
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Summary

• Requiring a document that incorrectly describes
  insurance coverages is not helpful
• Could result in spending thousands of dollars in
  legal fees to pursue litigation or to defend
  oneself from litigation
• Agents, brokers or producers that continue to
  violate the guidelines of Certificate issuance do
  so at their own peril and possible loss of their
  livelihood.