What Business Owners Need to Know About Certificates of Insurance

As a business owner, understanding certificates of insurance (COIs) is essential for financially protecting your company and fulfilling clients’, landlords’ and partners’ expectations. By working with a qualified insurance professional, you can retain a full understanding of COIs and how they can help verify that your business is prepared for unexpected mishaps or incidents.

What Is a Certificate of Insurance?

These certifications are typically standardized documents that can act as proof of your business’s insurance coverage. Your COIs outline key details, such as policy types, coverage limits, effective dates and insurance providers. While a COI is not the policy itself, it serves as evidence that your business has current insurance in place.

Why Are They Important?

COIs can play a crucial role in many business transactions in Kingman, KS, Anthony, KS, Cheney, KS and throughout Kansas. Consider the following reasons why certificates may be essential:

• Contract requirements—Many clients, vendors, project owners or other stakeholders will request a COI before starting work to confirm you have adequate insurance.
• Leases and rentals—Landlords often require proof of insurance before leasing commercial space to your business.
• Vendor relationships—Working with other businesses may require you to provide a COI to demonstrate your commitment to risk management.

What Should Business Owners Look For?

When reviewing or requesting a COI, pay attention to the following elements:

• Accurate business information—Verify that your business’s name and address are correct.
• Coverage details—Confirm the document lists all required coverages, such as general liability, workers’ compensation or commercial auto.
• Policy dates—Make sure your business’s coverage is active and will remain so for the duration of your contract or lease.
• Additional insureds—Make sure all necessary parties are listed on your policy, as some agreements may require additional insureds.

Learn More

At Strong's Insurance, Inc., we proudly work with Kansas business owners to obtain, review and understand COIs. Contact us today to speak with one of our knowledgeable and experienced agents.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.