Protecting Your Beloved Possessions

Business Insurance And Understanding Your Certificate Of Liability

Do you own a small business? If so, you likely have business insurance or you may be shopping for a new policy. Some people are confused about pertinent business insurance documents. The Certificate of Liability Insurance is one of those documents. It serves as proof of business insurance. There are different types of business insurance available too. This is why businesses need to ensure that they select the right type of insurance. The following will help you to understand these points better. 


Professional Liability Insurance - This type of insurance will cover your business if a person makes a claim against your business regarding its professional or personal services. It is sometimes referred to as "Errors and Ommissions Insurance."

General Liability Insurance - This type of business insurance will protect your business against claims that are related to property damage, medical expenses, or bodily harm. It is sometimes regarded as "Commercial General Liability Insurance."

Business Owners Policy - This can be considered as "full coverage" business insurance. This type of policy is a combination of General and Professional Liability Insurance.

What does the Certificate of Liability document contain?

This document is likely in your original paperwork. If it is not, you may be able to download copies or request a copy. The document contains information that is pertinent to your policy and can be considered as a quick glance of your coverage. It includes the type of policy, policy number, effective dates, name of the insured, and limits on coverage. 

Why would a client ask to be added to a Certificate of Liability as a certificate holder?

Depending on your industry, you may end up hearing this routinely as a request. Adding a client to your Certificate of Liability does not mean that you are "adding them to your insurance." It also does not establish an agreement or entitle them to any legal rights. It will effectively mean that you have insurance and that you have given proof that you have it to the certificate holder. This is a common request in circumstances involving subcontracting agreements. 

Make it a habit to review your policy routinely and ensure that you understand it. A business insurance agent is a good resource to use to ensure that you have the right type of policy.  If you are thinking about upgrading your insurance, they can also let you know how that can benefit your business.