Certificate Of Insurance

A companion piece to your small business insurance policy, a certificate of insurance is

a business tool. Make sure youre covered and ready when clients ask for it.
Youve landed a new client and are excited to get started on the project. But before you
can begin, your client needs a copy of your certificate of insurance. Do you have it? Do
you even know what it is?
Proof of Insurance for Small Businesses
If not, dont worry! A certificate of insurance is a simple document issued by your
insurance company that verifies that you have insurance coverage for your small
business, what that coverage is, who it covers, the effective date of the policy, and the
types and dollar amount of limits and deductibles.
A certificate of insurance also known as proof of insurance is requested when
liability and large losses are a concern. For example, if youre providing software
programming services for a client, they may require a certificate of insurance to prove
that certain liabilities will be covered during the course of the project. No matter what
kind of client youre working with, having the right insurance policy and proof of
insurance will protect you and your client and give you both peace of mind.
Even if you havent been asked to show a certificate of insurance, its an added benefit
of having proof of your small business coverage. Most insurance providers include the
certificate in your initial insurance documents; if not, they are required to provide one
upon your request.
Get Your Certificate of Insurance Ready Today
Dont want until youre asked to provide your certificate of insurance to get the small
business insurance coverage you need. You dont want to risk losing important clients or
hurting your business because you dont have a proof of insurance. Contact Hiscox

today to establish an insurance policy thats right for your line of work. Then when your
next client asks for your certificate of insurance, youll be ready.
DEFINITION OF 'CERTIFICATE OF INSURANCE '
A document issued by an insurance company/broker that is used to verify the existence
of insurance coverage under specific conditions granted to listed individuals. More
specifically, the document lists the effective date of the policy, the type of insurance
coverage purchased, and the types and dollar amount of applicable liability.
BREAKING DOWN 'CERTIFICATE OF INSURANCE '
A certificate of insurance is often demanded in situations where liability and large losses
are a concern. For example, a company wishes to hire a driver from a temp agency. The
company will most likely ask the agency to show them a certificate of insurance that
proves that certain liabilities will be covered by insurance in the event the driver causes
problems, such as incurring damages from driving the company's vehicles.

Transfer of certificate of insurance.

1. Where a person in whose favour the certificate of insurance has been
issued in accordance with the provisions of this Chapter transfers to another
person the ownership of the motor vehicle in respect of which such insurance
was taken together with the policy of insurance relating thereto, the certificate
of insurance and the policy described in the certificate shall be deemed to have
been transferred in favour of the person to whom the motor vehicle is
transferred with effect from the date of its transfer.
2. The transferee shall apply within fourteen days from the date of transfer in the
prescribed form to the insurer for making necessary changes in regard to the
fact of transfer in the certificate of insurance and the policy described in the
certificate in his favour and the insurer shall make the necessary changes in
the certificate and the policy of insurance in regard to the transfer of insurance.

3. The insurer to whom any application has been made under sub-section (1) shall
transfer to the other person the certificate of insurance and the policy described
in that certificate unless he considers it undesirable having regard to:(a)

the previous conduct of the other person(i)

as a driver of motor vehicle; or

(ii)

as a holder of the policy of insurance in respect of any motor

vehicle; or

(b)

any conditions which may have been imposed in relation to any such
policy held by the applicant; or

(c)

the rejection of any proposal made by such other person for the issue of a
policy of insurance in respect of any motor vehicle owned or

possessed by

him.

4. Where the insurer has refused to transfer in favour of the person to whom the

motor vehicle has been transferred the certificate of insurance and the policy
described in that certificate, he shall refund to such transferee the amount, if any,
which under the terms of the policy he would have had to refund to the insured
for the unexpired term of such policy.