Many people have questions about what a certificate of insurance or COI is. While some business owners are familiar with COIs, our Insurance Brokers in St. John’s are typically asked to explain the purpose of COIs and when they are necessary.
Newfoundland Insurance Brokers
What is a certificate of insurance (COI)?
When it comes to suppliers and contractors working on-site or organizations that host an event on your property, the most important thing you need to be clear about is whose insurance will act if a loss or incident occurs when dealing with business arrangements with another business.
The certificate of insurance will be a document provided by your insurance company or broker, which is then used to verify that there will be insurance coverage under specified conditions granted to individuals listed out.
Proof of Business Liability Insurance
But a certificate of insurance will not act as a formal contract between two parties. It is considered an informal document that simply shows proof of insurance. It is also not considered a contract between the certificate holder and the insurance company or broker. Often, businesses will have a proof of coverage letter directly from the broker or insurance company.
In an ideal situation, there will be a contract between the business parties clearly stating the insurance obligations. Without a formal agreement, you should instead get a certificate of insurance that states your organization (with the full legal name and address shown) is represented as an insured.
Insurance Brokers in St. Johns
When do you need to get a certificate of insurance?
Certificates of insurance are necessary when a third party enters your property to perform a task that is out of your hands. For example, if an home renovation or contracting company is providing services on your commercial premises, you will not want to be the one responsible for damages, losses, or any types of claims. In this case, you would ask the contracting company for their certificate of insurance (or a proof of coverage letter from their insurance provider).
If the third party wishes to add you as an “Additional Named Insured,” and have you covered as part of their plan, a more extensive process is required.
Any responsibilities concerning damages will lie with the entertainment company, not you or your company, since it is not your event. You will only be offering your property as a venue or service to the entertainment company.
Get Expert Advice with Newfoundland Insurance Brokers
If you have questions and concerns regarding your Newfoundland Insurance, Brokers here at Crosbie Job Insurance are knowledgeable and compassionate and happy to help educate you about how you can protect your business assets, including certificates of insurance. Get in touch today by requesting a free quote from one of the longest-standing insurance companies in St. John’s, or call our experts at +1 (800) 563-7788.
