certificate of insurance
Definition
A certificate of insurance is a one-page summary document that proves you have an active insurance policy and shows the key details of your coverage, like policy limits and expiration dates. Your insurance company or broker generates this document and sends it to whoever needs proof that you are properly insured.
Example
A general contractor hires your painting business, and before you step foot on the job site, they ask for a certificate of insurance to confirm you carry liability coverage in case something goes wrong.
Watch Out
A certificate of insurance is just proof of coverage and does not actually change or expand what your policy covers, so never assume it guarantees you are protected for a specific job or situation.
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This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.