If you own a small business and are planning on hiring a third-party company to complete work on your behalf, remember to request a certificate of insurance.
What is a Certificate of Insurance?
A certificate of insurance (COI) is a document that verifies a company has insurance. It outlines the key information in the insurance policy including but not limited to the following:
- Named Insured
- Policy number
- Effective dates
- Key coverage
- Limits of insurance
A COI would typically be requested by you to verify the contractor has the appropriate insurance coverage in the event there is an accident or a mistake made by them.
When should you request a COI from a third party?
You should request a COI anytime you hire a third party to do work for you; this includes any work on your premises, work done by subcontractors, or any other vendor. And if you do request a COI, store it for a minimum of 5-7 years and always request an updated COI each time it expires.
What should you look for on a COI?
- Confirm the contractor’s liability limits.
- Check that the coverage doesn’t expire during the term of work.
