A certificate of insurance is a great business tool that will help you manage your claims smartly. It will allow you to work smoothly with vendors and clients so that you can expand your business efficiently.
Read on to learn why you need a certificate of insurance to run your business successfully.
What Is a Certificate of Insurance?
A certificate of insurance for business is a document issued by your insurance company as proof that you have proper business insurance coverage.
This document provides essential information like policy limits, deductibles, effective date, and owner of the policy. Many new clients and vendors will want to check this certificate before having a tie-up with your business.
Components of a Certificate of Insurance
You should be aware of essential items that must be on a certificate of insurance to prevent disputes related to claims. While requesting the insurance certificate, make sure to check the below components:
- General liability
- Automotive liability
- Workers’ compensation
- Addition Insured Status
- Name of the insurance company
Unless all the above items are mentioned clearly on the certificate of insurance, do not accept it.
Why Do You Need a Certificate of Insurance?
Having a certificate of insurance will serve many benefits. For instance, it can help you secure a good business deal as it shows that you are aware and responsible for any potential damages or liabilities. It increases your credibility in your industry and helps you stand out as a reliable provider.
Protect Yourself When You Outsource
Outsourcing involves certain types of risks. Having a certificate of insurance will protect you from these risks and allow your vendors to work with you without worrying about the potential damages.
How to Get a Certificate of Insurance
Most insurance companies give this certificate to their policyholders at the time of purchase. If you do not have it, you can request your insurance provider to issue this document on priority.
This is how a certificate of insurance can help you improve your business. Make sure you apply for one today. Contact the experts at Pittman Insurance Group for all your coverage needs. Our dedicated team is eager to assist with all your insurance questions and needs.