What Is A Certificate Of Insurance?
A Certificate of Insurance is a one-page document prepared by your insurance representative, to show proof of insurance to a third party. It provides no coverage to the certificate holder and rarely guarantees that the certificate holder will be notified if there is policy cancellation. It basically just provides a summary of your insurance coverages, limits and verification that an organization is insured.
When Should You Request A Certificate Of Insurance?
A church should request a certificate of insurance whenever it enters into agreements or contracts that involve third parties or outside organizations. This could include renting or allowing an outside group to use your facilities, hiring contractors for construction or renovation work, hosting events that involve outside vendors or participants, or any other situation where liability coverage may be necessary. The certificate of insurance provides proof that the other party has insurance coverage, which can help protect the church from potential liability issues.
You will most often want to ask the other party to add your church or school as an Additional Insured (see below).
What is an Additional Insured?
Additional Insured is a person or organization not automatically included as an insured under an insurance policy who is included or added as an insured under the policy at the request of the named insured.
For example, if your church allows other groups or organizations to use your premises, you should ensure that the other organization is insured and request that your church be added as an “additional insured” to their policy for the time they are on your premises. This endorsement now includes your church as an insured under their policy. Make sure they provide you with proof in the form of a Certificate of Insurance and it should specifically note that your church has been added as an additional insured to their policy.
Be diligent, sometimes the Certificate of Insurance does nothing more than include the church’s name in the Certificate Holder box at the bottom of the Certificate of Insurance. This only means you are the entity receiving the document. A COI is simply proof of insurance at that point – it needs to have language referencing Additional Insured status in the comment box just above the Certificate Holder designation.
Questions? Feel free to reach out to us, we’ll be happy to help.
