How to Request for Insurance Certificates

Popularly known as the evidence that insurance is in effect, insurance certificates have become the ultimate proof necessary in most business transactions. Often, they require certificates of insurance as proof of coverage in lieu of the insurance policy. It is common knowledge that insurance policies cannot be obtained since it contains confidential information that includes, payments, premiums and amortization.

In requesting for an insurance certificate, the correct information you need is actually your own responsibility. You can avoid having a generic certificate or one that does not state your needs.  By specifying what you have in mind, request the agent to show the insured’s necessary coverage and the acceptable policy wording relevant to your business transaction.

The simple steps to follow;

1. Begin to contact the proper insurance agent or company. Often, people have insurance coverage with several insurance companies. They may have their homeowner’s policy with one company and their auto policy with another insurance agent. Determine the right insurance company you need before requesting the right coverage certificate.

2. Always confirm the named insured. In requesting for a certificate of insurance, identify the name of the policyholder and confirm if it is the same name you are requesting a certificate for. This is very important when requesting for commercial policies. The commercial name ABC Co., Inc. is different from ABC & Sons, Inc.  Commercial names can be related but has different management teams and therefore have different insurance needs.  Furthermore, they may also have their own business transactions not relevant to your own.  Be sure of the company name alone.

3. Thirdly, be ready to define your interests and purpose. Insurance companies issue certificates of insurance only when there is an expressed or implied contract between the policyholder and the certificate holder.

Explain to the insurance agent or company your business and nature of relationship with the insured party or policyholder.  For example, by explaining to the insurance company or agent that you are financing his vehicle, you can get the certificate of insurance as an evidence for the automobile’s coverage. However, an automobile leasing company has little interest in the driver’s worker’s compensation policy.  You must be able to establish your direct relationship with the policy holder and his transactions.

4. Find out about your required minimum limits and compare it with the insurance certificate. There are commercial contracts that express the minimum amount of coverage required in order to comply with the agreement. Always inform the insurance company of your minimum limit requirement in requesting for the certificate. If you have a minimum limit of liability of $300,000 in your contract, and the certificate issued is only $200,000, then you have to request for additional coverage and advise the insured that the terms of the contract has not been complied.

5. Always provide the insurance company your name and correct mailing address. You as the certificate holder will need to be informed of future changes that may happen. Complete the certificate holder’s information sheet carefully. In cases of future insurance cancellations by the policyholder, or non-renewal of such policy, you will be notified by the insurance agent through mail in this address. Make sure you receive these notifications on time too and still hold those insurance certificates.