Understanding the Purpose of Certificates Of Insurance

Understanding the Purpose of Certificates Of Insurance

When stores lease real estate spaces or construction firms win jobs, the party on the other end usually has a very specific set of requirements.  

One of the main requirements is that the tenant, contractor or borrower show proof that he or she has adequate insurance.  

Copies of insurance documents may be sufficient. But, not all companies want copies of documents sitting around.  

A very helpful substitute for document copies is a certificate of insurance.  How it works 

A certificate of insurance is a standardized document that will show:The typesof coverage the policyholder has purchasedThe effective and expiration dates of the policy, and The limits of liability coverage.  In short, it provides evidence that a company is insured. This item is simple to create and store. Unfortunately, not all firms and insurance buyers fully understand them.ACORD constructed the forms that are most commonly used. According to their instructions these certificates are intended for informational purposes.  

When some businesses receive these certificates, they think the items are contracts. But, the certificate is simply a snapshot of insurance provisions. It indicates that a policy exists, but it is not the document that actually provides coverage. The only document that actually provides coverage is the policy itself. When you need one 

Companies and individuals that hire contractors want to be certain that they will not be held liable for injuries, damages or substandard work. For this reason, they will frequently request to see a certificate of insurance. 

If your company has been contracted to do work and is asked for proof of insurance, we can provide you with a certificate of insurance if you have purchased coverage through us.  

Many businesses want these certificates to have specific terms, phrases or words. But agents have legal boundaries for such requests. The only way agents can add wording to a certificate is if the listed policies contain that wording. Changes are not always allowed.Many states prohibit agents from handing out certificates implying provisions that are not included in the policies.  

For example, a certificate holder may want the item to state that coverage is primary and noncontributory. However, policies that do not reflect such information cannot have certificates that indicate otherwise.  

Before you sign papers for leases or construction jobs, you should verify coverage requirements with us. 

Don’t be alarmed or taken off guard if a client requests the addition of their name or business as a certificate holder on your certificate.  

Oftentimes, this is easily accommodated, but you must submit a request to your insurance agent so that they can review and issue your certificate accordingly. Act now 

Don’t wait until a client asks you to provide evidence of business insurance coverage. You can be proactive and have your document ready.  

When working with a new client, the last thing you want is to hurt your company’s reputation and lose clients because you have not requested your insurance certificate in advance.  

 BGES Group’s office, located in Larchmont, NY is a full service insurance agency offering, Property, Liability, Umbrella Liability, Business Auto, Bid & Performance Bonds, Inland Marine, Worker’s Compensation, New York State Disability, Group Health, Life insurance, Personal lines and Identity Theft.                                                                                     

BGES Group are Worker’s Compensation Specialists for the States of New York, New Jersey and Connecticut – Issues we address: 1) Lowering pricing – we have specialty programs that can save you up to 40%; 2) Finding a new company; 3) Being cancelled or non renewed; 4) Audit disputes; 5) Company creating fictitious payroll at audit time; 6) Lowering high experience modifications factors; 7) Misclassification of payrolls; 8) Lowering or eliminating renewal deposits;   9) Getting coverage when you’ve been without for a few months; 10) Covering multiple states under one policy; 11) Eliminating 10% service or policy fees; 12) Timely issuance of certificates; 13) Always being able to get someone on the phone or by email when you need to.   

Special Contractor Insurance Programs (NY) – We we have 50+ insurance companies to market your general liability, umbrella liability, business auto, workers compensation, bid & performance bonds and group health coverages.  We help contractors set up proper risk transfer mechanisms.  If you’re a contractor we offer extensive information about insurance markets, coverages, risk transfer mechanisms, subcontractor screening, ways to lower your insurance costs that lower them.                                                                                

New Jersey and Connecticut Contractors:  We have a competitively priced (savings up to 50%)  General Liability, Umbrella Liability, Business Auto, Workers Compensation program.  Want to lower these costs?  Get a quote today!   

Identity Theft – Over the past year hundreds of thousands of people have had to deal with identity theft.  This has become such a huge problem so we now offer Identity Theft Protection. We heard stories of kids going for car loans and learning they owe $200,000+ to companies they never heard of.  Under our program you can protect yourself, spouse and children.  Anyone you know can purchase this protection though our plan!  Click here to learn more or sign up.                                                                                                   
If you would like to speak with us call Gary Wallach at 914-806-5853 or click here to email or click here to visit our website. 

Company: BGES Group, 216A Larchmont Acres West, Larchmont, NY 10538

e-mail: bgesgroup@gmail.com
website: http://www.bgesgroup.com
© – Copyright – 2019 – BGES Group
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