Common Pitfalls of Certificates of Insurance - October 13, 2022

Policyholders often obtain and furnish third parties with certificates of insurance without considering the effects doing so may have on their coverage. Many companies rely on information contained in a certificate of insurance as proof of insurance coverage, only to find out after it is too late that the information was not accurate, or coverage was not in place. Insurance agents also can be too quick to issue a certificate of insurance and may face liability or even fines if they are not careful. This topic will help anyone working with certificates of insurance in any field understand what a certificate of insurance is, and what it can and cannot do, and will explain fully the pitfalls of certificates of insurance, and how policyholders, brokers, and third parties seeing coverage under another’s policy can get themselves into trouble in solely relying upon certificates of insurance. Learn how to avoid these problematic situations, so that those involved in a transaction will be able to understand what it is they need to confirm coverage, how to ensure it is in place, and how to avoid negatively impacting their respective rights and obligations.