An Explanation of the Certificate of Insurance and why It is so Important
A certificate of insurance matters a great deal in the business insurance industry. Sometimes referred to as proof of business insurance, this certificate is a snapshot of a company’s current insurance policies. Customers, vendors and landlords commonly request to see a business’ certificate of insurance.
This document helps such parties verify the business has the proper coverage. If an insurance claim arises, the customer will rest easy knowing the proper remedy may be available.
Each certificate of insurance applies to a single holder. The holder is the business or entity requesting the certificate of insurance. A certificate of insurance is not applicable to other businesses. Each unique certificate of insurance solely applies to its individual holder.
It is important to stress that each certificate is a snapshot of current business insurance coverage. These documents are valid for a single day. A business can cancel its insurance coverage at any moment. It is also possible for a business to modify its insurance policy at any point in time. For these reasons the certificates often are only temporary.
Businesses should periodically request a certificate of insurance. This document helps generate a rapport with prospective clients. It makes the business appear legitimate and trustworthy.
An insurance agent can usually generate a business’s certificate of insurance upon request. A nominal fee may apply, but many reports are free. Some prospective customers will specifically ask to see a business’s certificate of insurance. It is advisable to hang this important document in a highly visible area of the business.
If a company can’t prove it has business insurance, it may suffer competitive disadvantage. It does not matter if you own a sporting goods store, a hair salon, a construction company or another type of business. You should periodically update your certificate of insurance as a gesture of good faith.
This simple update may inspire customers to do business with your company. It may alleviates concerns regarding potential accidents and other incidents that might arise during the course of business. Obtain your certificate of insurance today. Display it prominently to prove you have business insurance. This important document just might help your company establish a slew of new profitable business relationships.
Need a certificate of insurance? Call your insurance agent today for a policy quote.