Many situations call for the necessity to provide proof of insurance. This can be life, auto, business, or home-owner’s insurance. Instead of providing a third party with a long contract as verification, a person will typically show an insurance certificate. When this is done, a third party can be satisfied that insurance coverage is adequate to meet legal requirements or business requirements. Learn more about this document, so you can realize it’s importance.
What is an Insurance Certificate? This is a document issued by the company that sold the insured person an insurance policy. While it is not a copy of the insurance policy itself, it does contain pertinent details from one. Depending on the nature of a request, a third party can receive an insurance certificate that lists provisions of an insurance policy to fulfill stipulations. This document should only be accepted from the insurance company to safeguard against fraud unless the third party is a law enforcement officer. Usually, the party wanting proof of insurance will have to call the insurance agent. This representative may have to get oral or written permission from the insured person before sending the insurance certificate.
Each insurance company can draw up its own insurance certificate. However, most contain standard information. The producer of the document is the full name of the insurance company. The insured is the full legal name or business name of the person who is insured. The policy number will be listed on the certificate. This document will also list the types of coverage the insured has. This can be general liability for a business owner and automobile insurance. An insurance certificate should have the limits of the policy. These limits could be for each occurrence or the general aggregate.
What is an Insurance Certificate? It’s important to know about this document and what it can mean for you. Having valid proof of insurance can prevent you from getting a ticket for lack of insurance when you are driving. If you have questions about this document, talk to your insurance representative. This agent can inform you of your rights and responsibilities in keeping this document.
