Whether you run an auto shop or a beauty shop, from time to time, you might need to apply for a professional license, file documents at city hall, or show other documentation in order to sign contracts. One of these may be a certificate of liability insurance.
A certificate of liability insurance is a document that proves you have General Liability Insurance or other policies. These certificates are one page long, certify your coverage, and list your policy’s important features, including:
- Coverage limits.
- Expiration dates.
- What the policy covers.
- Additional insureds (i.e., contractors or non-employees covered by your policy).
To see what one looks like, check out this sample certificate of liability insurance.
When Do You Need a Certificate of Liability Insurance?
Small businesses often need a certificate of insurance when they:
- Begin working with a big client.
- Sign a contract.
- Move into a new office and sign a lease.
- Work as a contractor.
In a situation like this, businesses you contract with want to know that if something goes wrong, you’ve got insurance.
Other times, you might have to provide a copy of your insurance documentation so that a client can file it with their insurance company.
For example: Let’s say you run an IT consulting firm. You’re hired to oversee a client’s network and build custom software for their sales department. The project will take months, and you’ll be working at the client’s office.
The client’s insurance company requires documentation that you and your employees have Workers’ Compensation Insurance and General Liability Insurance. Because the insurer wants to know that their client isn’t responsible for covering your workers while they are working at the client’s office. A certificate of liability insurance proves that these workers are already covered.
Do I Have to Pay a Fee to Get a Certificate of Insurance?
No, insurance certificates are free once you have coverage.
I Need an Insurance Certificate. How Quickly Can I Get One?
If you need an insurance certificate and don’t currently have an active insurance policy, a UniAmerica Insurance agent can help. Contact us on the web www.uniamericainc.com or give us a call at 1-310-835-3373.