Understanding the Certificate of Insurance

To secure appropriate insurance coverage, a significant amount of information is typically required.? Gathering, maintaining, and properly documenting this data puts pressure on agents.? It’s important that both agents and their clients understand how ACORD forms support data collection while incorporating statements that warranty the information is accurate.??

One of the most common forms an insurance agent uses is the ACORD Certificate of Insurance (COI).? This is a document that summarizes key elements of an insurance policy or multiple policies and lists types of coverage, policy numbers, policy limits, and effective and expiration dates.? This document is provided by an agent and issued on behalf of an insured to an entity requesting proof that insurance coverage is in place.

Certificates of Insurance are requested and kept on record to prove a business is covered appropriately and in compliance with insurance requirements that may appear in leases or contracts.? Agents do their business insurance clients a service when they explain how a COI works, and the process for obtaining and maintaining these forms.?

A Certificate of Insurance is not a particularly complicated form, but it does play an important role in providing validity of a business’ insurance coverage and should be handled properly by the agent, insured, and insurer. Altering the language or falsifying information on a certificate of insurance can create significant errors & omissions exposure for agents.

If an agent is not familiar with the proper use of ACORD forms, the ACORD Forms Instruction Guide provides detailed information on what goes where.? For agents who wish to digitize forms, and eliminate redundant entry of common data elements, AVYST eForms Wizard is an extremely affordable solution.? Visit www.avyst.com/go for more details and access to a free trial.??