A certificate of insurance may be needed by an insurance company from those persons or business entities that provide services or goods to customers. By keeping a file of all insurance coverage, the insured can often receive a reduction in insurance premiums.

Having this document does not mean that it constitutes an insurance contract as it does not make changes to or modify the insurance coverage nor does it spell out exclusions. It only certifies that there existed insurance at the time of issuance. Certificate holders do not qualify to obtain information regarding policy changes during the validity of the insurance coverage. They may only be informed about any notice of termination.

A certificate of insurance should be made out in original and have original signatures as well as name the insured and certificate holder. It should also specify the minimum amount of insurance as well as state the required period of notice in case the coverage is to be canceled. In addition, the document may be accompanied by an endorsement page which shall make reference to the policy number which in turn should match the certificate. All insurance companies providing insurance shall legally exist in the state in which the policy holder takes out the insurance policy. The insurance companies should also be rated “A” or better by A.M. Best’s Key Rating Guide or be listed in the Federal Register’s “Companies Holding Authority as Acceptable Sureties on Federal Bonds.”

In case an organization rents a building, land, or other related facility, the owner of the property may first ask that some proof that insurance exists. A form needs to be filled to request a certificate. There is also provision to name the property or business requiring the certificate as additional insured.

A typical form will have a date of issue, name of the producer as well as names of the companies affording coverage. It shall also have a code and sub-code as well as the name of the insured. In addition, the various types of coverage will be explicitly stated. These may include employer’s liability limit, comprehensive general liability and comprehensive automobile liability. There will also be the policy number, policy effective date and expiration date of the policy. The cancellation of any of the policies mentioned in the certificate of insurance the issuing company will give a required number of days notice of termination.

While getting a certificate of insurance, it is prudent to first try out the pre-drafted documents that are available in the market. These documents are concise and meet the demands of most users. Using these documents instead of writing one from scratch is recommended.

Written by Wade Anderson.

“We are working to help organizations lower costs, reduce paper and achieve better tracking and performance” said Kristen Nunery, Chief Executive Officer.  “It’s clear both private and public organizations are looking to achieve better profitability, be more environmentally friendly and eliminate unneeded liability exposure.  myCOI makes this process easy and efficient. ”

In addition to the web based certificate of insurance tracking software, clients also gain access to myCOI’s team of experts in the areas of insurance, technology, risk management and quality control to handle certificate requesting, processing, and validating.  myCOI handles all communication with vendors and agents, including those relating to non-compliance issues and expired policies, allowing clients to focus on running their core businesses rather than worrying about their certificates of insurance.

About myCOI

Headquartered in Marion, IN, my COI (http://www.mycoionline.com) is a WBE business and leading supplier of Certificate of Insurance management software specializing in Pharmaceutical, Construction, and Municipal certificate management.  myCOI’s innovative web solution allows organizations to automate certificate of insurance collection, validation and tracking.  myCOI has also applied for HUBZone certification.

“The bottom line is that we are able to significantly reduce our liability using myCOI,” said Frank Redavide, President of Castalia Homes.  “We will not allow a subcontractor on a job site without the proper insurance coverage.  myCOI ensures that these policies remain in effect with the proper amount and type of insurance, allowing me to focus on running my business.   Additionally, myCOI excels in all four areas that are important to me as I build homes: communication, service, quality, and pricing reduction.  Since myCOI handles all communication with vendors and agents, they make it very easy to do business with them.”

About myCOI

Headquartered in Marion, IN, my COI (http://www.mycoionline.com) is a WBE business and leading supplier of Certificate of Insurance management software specializing in Pharmaceutical, Construction, Banking, Property Management and Municipal certificate management.  myCOI’s innovative web solution allows organizations to automate certificate of insurance collection, validation and tracking.  myCOI is also located in a HUBZone.

About Castalia Homes

Castalia Homes (http://www.CastaliaHomes.com) is a custom home builder specializing in high performance green homes and is committed to a leading role in environmental stewardship.  Building upon a tradition of value, quality, craftsmanship, and homeowner satisfaction, Castalia Homes is dedicated to providing clients with value packed custom homes and an outstanding home buying experience.  Castalia accomplishes this by building in outstanding communities, using innovative designs and superior construction brought to the client by knowledgeable associates with a combined 35 years of experience. Keeping clients informed on the progress of a new home and letting them know when it’s time to make a decision are just a few of the ways Castalia Homes makes the home-building experience special.

ACORD Form Alert: New changes to (8) ACORD certificate of insurance forms. Recent regulatory changes have required significant revisions to the family of ACORD forms known as certificates of insurance. Changes have been made to the following forms:

•  ACORD 20 – Certificate of Aviation Liability Insurance
•  ACORD 21 – Certificate of Aircraft Insurance
•  ACORD 22 – Intermodal Interchange Certificate of Insurance
•  ACORD 23 – Automobile Certificate of Insurance
•  ACORD 24 – Certificate of Property Insurance
•  ACORD 25 - Certificate of Liability Insurance
•  ACORD 27 – Evidence of Personal Property Insurance
•  ACORD 28 – Evidence of Commercial Property Insurance

Download the FAQs on U.S. ACORD Certificates

Under the ACORD licensing agreement, all prior form editions may be used for a period of twelve (12) months from the date of the new form edition. For example, if the new ACORD form edition is dated (09/09) and the prior edition is dated (01/09). Under the ACORD licensing agreement, the (01/09) edition can continue to be used until (09/10).

After that time, agents issuing the earlier (01/09) edition of the ACORD form may no longer be considered compliant with state insurance regulations and would be in violation of the ACORD licensing agreement prohibiting the use of the copyrighted form. Once a form is outdated, ACORD no longer checks on whether it remains regulatorily compliant.

For the exact licensing agreement wording please review the ACORD Forms Licensing Agreement. Visit the ACORD website at:  www.acord.org.