A certificate of insurance (also known as a certificate of currency) is a document issued by an insurance company to confirm that insurance has been obtained for a business or individual for a specific time.
The document does not substitute the actual insurance policy documentation and is best described as a summary of the most important provisions of the insurance policy wording. The certificate of insurance cannot be used to make a claim and is simply a confirmation of insurance to certify to third parties that you have obtained sufficient insurance usually to enter a premises or perform work.
The certificate of insurance will list the effective date of the policy, the type of insurance purchased, and the amount of money which is applicable to liability. This type of document is in demand usually where liability losses are a concern. For example construction sites will often request these, or window cleaners before they are contracted, and installers or handymen might also be asked to produce one. Even bankers or financiers may request these to confirm that the item they have lent the funds towards has insurance. This way they can be paid back in the case of a loss.
Contractors can also request certificates of insurance from sub-contractors in order to ensure that any damage the sub-contractor causes, such as property damage or third party injury, has insurance in place to cover any costs.
It is common practice in most cases that you will be informed by the person contracting you out about the need for a certificate of insurance or certificate of currency. An insurance provider will need to supply this to you. There is often urgency with obtaining a certificate with contract work, and a good insurance broker can organise for it to be sent off to you right away.
Contractor Cover can organise your certificate of insurance and insurance policy and have them in your email inbox in a matter of minutes. Contact Contractor Cover today for more information and to obtain a quote.