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How to read your Certificate of Insurance

27 Nov, 2017 | View Counts (3410) |Return|

Your insurance certificate offers you a snapshot of the information contained in the policy. It includes basic information about specific insurance coverages on a single page. It does not include all information from the policy but is generally relied upon for proof of certain insurance coverages.

Here are a few points to take into consideration when reviewing your certificate of insurance:

  • Verify your personal information is correct, including your name and address.
  • You will find the insurance company information and the agent information. These will be separate places on the certificate.
  • Each insurance carrier will be listed and will correspond by letter to the type of insurance that carrier is affording the insured.
  • Check that the correct people/entities are named on the policy.
    • Additional named insured: the name of the co-owner with the same rights as the insured. An example of this could be an affiliate of the primary insured.
    • Additional insured- an endorsement that extends policy liability limits to another party by endorsement. They do not have the right to alter the policy, but have the right to be indemnified should a loss occur. For example, if you are insuring a business that is a franchise, most Franchise Agreements stipulate the franchisor must be named as an additional insured via endorsement.
  • Policy number is what will be used to identify your specific policy.
  • Policy effective and expiration date will show when the policy goes into effect and when the term ends. If there are additional named insureds or additional insureds, it is important to make sure they receive notice of renewals and cancellations.
  • Type of insurance and limits indicate the coverage types afforded under the policies and the corresponding coverage limits for each type of insurance.
  • When insuring a business, it is important to take note of which limits are aggregate or per occurrence. Many Franchise Agreements and landlords have certain requirements on the limits and it is important to verify compliance.

If you have any questions about how to read your insurance certificate, our office is ready to help. We have the experience and knowledge to help individuals and businesses of any size with their insurance needs. Click here to contact our office.

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