What is a "certificate of insurance"?

A "certificate of insurance" serves as a document that summarizes the essential features of an insurance policy. It is typically issued by an insurance company or agent to provide proof that an individual or business is insured under a particular policy. This document contains critical information such as the type of coverage, the policy limits, and the duration of coverage, serving as proof for various stakeholders, including clients, contractors, or regulatory entities.

This tool is particularly important in situations where verification of insurance is necessary, such as in contractual agreements or during compliance checks. It is not a legal contract itself, as it does not create or alter the terms of the underlying insurance policy; instead, it acts as a summary or verification of coverage. Furthermore, it is unrelated to claims processing or the calculation of premiums, focusing solely on indicating that an insurance policy is in place and detailing its key components.