August 9, 2020

Insurance Certificate – How to Obtain an Insurance Certificate | Benefits

You might have seen somewhere or heard about Insurance Certificate, and may have no, little and full details about it. Well for those who don’t have an idea or little idea about it. This article is for you to read and enlightening you about it and why it is important you have an insurance Certificate.

Insurance Certificate

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What is an Insurance Certificate?

A certificate of insurance is a document that helps to proves you have the necessary insurance coverage as mandated by an organization, employer vendor or the stakeholders that have an interest in your ability to respond in a case of a covered peril.

Why Does an Organization Need Insurance Certificate?

The insurance certificate I would say is necessary because it helps you to prove to the outside vendor carrier insurance. If the vendor doesn’t have full coverage then your organization can be held responsible. If when the vendor’s contract with your organization states that there is adequate insurance coverage with them, a certificate of insurance is proof of the exact; how much coverage there is and if the policy is currently in force.

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How to Obtain an Insurance Certificate

The following are the way you can obtain an insurance certificate. Below are the listed steps;

  • Firstly, ask your client that is requesting for it what are the minimums and the limits of the coverage should be. Then get your client’s name, tax identification number (TIN) and address in case you have to increase your premium.
  •  Call your broker, and then explain to them what the minimum coverage of the amount is and that you need proof of insurance. If the policy already meets the requirements, then the broker will contact you with the carrier to secure the Certificat6e of insurance. If you are in need to purchase a rider to increase the coverage for the project, your broker will give you the details and the paperwork you will need to fill out and submit.
  •  Then once you are all ready, your broker will help create the certificate of insurance and then send a printed certificate of insurance to you after you will have to send it to your client in order to complete your transaction and then sign your contract to start your collaboration.

NOTE: That obtaining a Certificate of insurance from your broker can take up to days and weeks, depending on how easy it is getting a hold of your broker and also how fast he or she is able to complete the necessary paperwork work.

Benefits of Insurance Certificate

The certificate of insurance gives potential employers or clients that are insured. This means that in the situation of an unforeseen case like accidents or damage of property, there is a minimal risk of out-of-pocket payouts or unpleasant and expensive litigation for you or that of your customer. Been able to show proof of insurance is so important that it is often requested a first step prerequisite before anything else in the employment process. Many employers are required to show proof of insurance in the form of an officially generated certificate of insurance before letting personal trainers train clients, handymen, etc. so much as to pick up the hammer.

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