Three Reasons Why Certificates of Insurance are Important

If you ever do business with a third-party vendor or use contracted labor, then you know the importance of Certificates of Insurance and why you need to have quick and easy access to them. Below is a list of the top three reasons that Certificates of Insurance are important.

The first reason that Certificates of Insurance are important is that they simplify things. Certificates of Insurance are a simple straightforward and reliable summary of your insurance coverage. While it does not include the potential voluminous pages of an actual policy, it includes the vital details that any vendor or third party will need to validate you have the appropriate coverage per their requirements.

The second reason that Certificates of Insurance are important is that they help companies maintain better more organized records that can help reduce their liability. When you have all of the insurance certificates for your third-party vendors an contractors, you can easily and quickly identify the coverages and third party’s insurers should something ever go wrong and you need to address a loss.

The third reason that Certificates of Insurance are important is that they prove you have the appropriate insurance. By summarizing everything from the policy holder, limits, coverages, and other key top line information, Certificates of Insurance provide potential partners the proof they need to hire a company that has the appropriate levels of coverage they are looking for.