Certificate of Insurance

A certificate of insurance is a document issued by an insurance company to prove the existence of an insurance policy. It states the type of cover, the value of cover, the commencement date of the policy and those individuals or possessions covered.

Short-term insurance and direct insurance companies do not issue certificates of insurance as the policy document the insured receives functions as such. Should an insured need a document indicating that he or she is in fact insured, such as for a creditor, the insurance company will provide a letter to that effect.

Certificates of insurance are often required for marine insurance and third-parties that make use of companies they require to have insurance. For example, should a large organization be looking to hire a temporary driver, they will require that the driver agency provide a certificate of insurance indicating that the driver is covered and so is any accidental damage he or she may cause to their vehicles.