A Certificate of Insurance is usually a one page summary that verifies the insurance coverage and limits for a policy for a business. Certificates show details of the policy such as the name of the insurance company, policy number, who the named insured is, any additional interests, and the dates of coverage. The types of certificates that are generally needed are: General Liability, Automobile Liability, Excess/Umbrella Liability, and Workers compensation.
Why are certificates so important? These are often needed to win contracts and during the bidding process for jobs. The companies looking for contractors will require certificates from the bidding parties to show that they have insurance and how much coverage they have in case anything goes wrong with a job. This also means that the company looking for outside workers will not be held liable for damages or injuries on the job. The additional protection helps keep the peace of mind for any business owner in the event of a lawsuit or large claim.
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