Actions speak louder than words; it’s true. In our case, a piece of paper means more than bare statements. See, when push comes to shove, it’s extremely difficult to prove anything, or better yet, feel secure about anything when it’s just worded out without any proof (document). 

This is what certificates are; an objective validation of all sorts of claims. From this, you might have gotten an idea about what a certificate of insurance is. In this blog, we aim to highlight the importance of certificates of insurance. Through this, you’ll also come to know how important it is for homeowners, especially when they give the charge of their home to others – mainly contractors.

What is a certificate of insurance? 

A certificate of insurance (COI) is a piece of paper that proves the fact that you have a certain type of insurance coverage. This certificate summarizes all the benefits that are related to the insurance policy that the insurer has purchased.

It generally contains; the name of the insurer, limits of their coverage, expiration dates, policy numbers, etc.

What purpose does a certificate of insurance serve? 

You see, in commercial settings, this insurance is a prominent factor in deciding partnerships and devising working relations. Whenever two companies/ businesses interact, they demand each other’s certificate of insurance. This is done to ensure that each has proper liability coverage and protection in place before they enter into a partnership.

Please note that a COI adds no benefits to your insurance policy. It’s just proof that you have one in place. See, your COI and your insurance policy aren’t the same things although they stem from the same areas of purpose – relating to insurance – they are different. You always need to keep your insurance file/ papers with you as a COI isn’t a replacement of these documents. 

Why do you need a Certificate of Insurance? 

When you hire a contractor or a subcontractor to work on your home, office, job site, etc. you wouldn’t want to cover their mistakes and shortcomings from your own pocket, would you? Plus, you wouldn’t want to hand over your property and business place to just anyone without ensuring that they have insurance in place to cover any accidents and mistakes. 

Them showing you a COI will clear your doubts about the contractor or the sub-contractor and will help you move forward in a safe, secured, and well-insured setting. 

See, if you’re a homeowner or run a small business, you would need COI too. As an insurer, being able to provide proof of insurance makes it much easier for you to enter into partnerships and grow your business and get work done on your house. 

Commercial Insurance 

Being a locally owned insurance company, we know how things run in Connecticut. At Paradiso Insurance, we want all our clients to keep their financials safe and secure at all times. Our commercial insurance is designed in a way that ensures maximum and optimal liability coverage at all times in a variety of situations. 

The Takeaway

We suggest that all our clients keep a certificate of insurance with them at all times and proceed with their investments and partnerships in its line only. For a free, no-obligation quote today give us a call at (860) 684- 5270 or visit our website at www.paradisoinsurance.com.