Why Certificates of Insurance Are Important
April 3rd, 2018 by ExigisAdmin
Whether for a home or a business, having adequate and comprehensive insurance coverage is important to protect and loss, fraud, and other hardships. This is especially true for businesses, where insurance can not only be a matter of protection but can be a requirement for other companies to even consider doing business with you. To prove that a business is insured, a certificate of insurance management is frequently issued by your insurer. Here are the basics of insurance certificates, and why they are important for your business.
What Are They?
A certificate of insurance provides proof of your business being insured, without you needing to furnish your entire detailed policy. Some of the information that you will see on the certificate will include your policy number, coverage type and amounts, as well as information about the insurer and insured, with signatures of both parties. These certificates can be issued by either the insurance company, the agent, or even your broker. Regardless of when you get your coverage, you should be able to request the certificate at just about any time, as long as the policy is active.
Who Needs to Know?
As a condition of doing business with another company or organization, you may be required to prove you have sufficient insurance coverage to guarantee your businesses ability to maintain itself in the event of a catastrophe, lawsuit, or other issues. This prevents them from being caught with an unexpected shortage of supplies if your business closes its doors once catastrophe strikes.
Why Should I?
Just like with getting the insurance itself, you should get these certificates for the good of your business’s financial health. Not only will being able to prove that you are insured fulfill the requirements of your clients, but will allow you to do business with confidence, knowing that you will not be sunk in the event of a lawsuit or disaster. Having this documentation on standby will also make you look organized, making potential clients more eager to work with you.
Having the proper insurance documentation will go a long way to help you to expand and become profitable, making clients want to do business with you, while you can grow, knowing you are protected against extreme loss.