What is a COI and why you need them
Disclaimer: you should always talk to your tax professional and or insurance agent for more detailed information or questions.
COI’s or “Certificates of Insurance” are specific documents that contain necessary details for an insurance policy that is easy to read and in a systematize format. The goal for the COI is to provide the policy status, show an overview of what is covered and by whom, and the main importance is to protect third parties’ liabilities and litigation. The COI is essential a quick glimpse of the holder’s policy on a single certificate that show the most relevant info, such as.
Policy Effective date
Policyholders full legal name
Type of coverage
Policy Limits
What is a “Policy Effective date”? A policy Effective date is the date the policy goes into effect and when the policy ends. Any work done outside of this date range will be considered “Not covered”.
What is a “Policyholders full legal name”? The Policyholders full legal name is the legal name that is given and submitted and who’s insurance covers and only that holders name.
Types of coverage
General Liability
Auto Liability
Workers Compensation
Employers Liability
Excess/Umbrella Liability
What is the “Policy limits”? The policy limit is the monetary amount that an insurance company will pay out in relation to a specific insurance policy claim. It refers to the maximum amount of money for which an insurance company is responsible.
Knowing what a COI is and why you need them is important to minimize the risk to your company and lose of time.
