14 Apr Trust But ALWAYS Verify! This Vital Document Could Be Fake or Expired (Insurance Certificates)
This week’s blog focuses on the importance of verifying the authenticity and validity of certificates of insurance.
Here are 3 steps to ensure you have a valid certificate of insurance:
1) VERIFY AUTHENTICITY – Determine if the insurance company listed on the certificate is an actual and legitimate business.
2) CHECK VALIDITY AND ACTIVITY – Make sure the certificate is for a currently valid, active and non-expired policy.
3) KNOW THE DIFFERENCE – ADDITIONAL INSURED vs. CERTIFICATE HOLDER
It is very important to note whether you, as a business owner, are listed as an “Additional Insured” or simply as a “Certificate Holder” on the vendor’s/sub-contractor’s policy.
Term Definitions:
* ADDITIONAL INSURED – Actually named and LISTED on the policy, granted the coverage and rights of the policy.
* CERTIFICATE HOLDER – Serves simply as a proof of insurance for the “Named Insured”.
Please note! A “Certificate Holder” is NOT LISTED on the policy and thus, IS NOT granted the coverage and rights of the policy!
Having a valid and authentic certificate of insurance is crucial when dealing with an emergency at your business, such as a valet company’s driver (or any other independent contractor) who gets involved in a car accident with a customer at your restaurant, fatally injuring the customer, for example.
SUMMERY: Make sure your certificates are valid, authentic and know whether you are listed as an “Additional Insured” or only as a “Certificate Holder”.