Demystifying the Jargon: A Guide to Understanding Additional Information on a Certificate of Insurance (COI)
A Certificate of Insurance (COI) acts as a snapshot of an insurance policy, but the additional information it contains can sometimes feel like a foreign language. This blog post will equip you with the knowledge to decipher the extra verbiage on a COI, ensuring you get the full picture of the insurance coverage being provided.
Beyond the Basics:
The core elements of a COI typically include the certificate holder, insured party, insurer, policy number, coverage types, and limits. However, there might be additional sections with specific details that require your attention. Here’s a breakdown of some common inclusions:
- Description of Operations/Locations/Vehicles: This section provides details about what’s covered under the policy. For example, it might specify if your specific work location or the type of vehicle you use is covered. Ensure this aligns with your needs.
- Additional Insured: If you’re listed as an “additional insured” on the COI, it means the policyholder’s insurance extends some coverage to you in specific situations. However, this doesn’t automatically translate to full coverage. Request a copy of the actual policy wording (endorsement) to understand the extent of coverage provided as an additional insured.
- Waivers and Exclusions: Some COIs might mention waivers or exclusions that limit the scope of the coverage. For instance, a policy might exclude specific types of accidents or damages. Review this section carefully to identify any limitations.
- Retroactive Date: This indicates the date from which the policy coverage applies. Ensure the retroactive date aligns with your needs, especially if there was a gap in coverage before obtaining the COI.
- Cancellation Clause: The COI might mention the conditions under which the insurance company can cancel the policy. Understanding these conditions can help you manage potential risks.
Remember, a COI is not a substitute for the actual insurance policy. While it provides valuable information, it’s not a comprehensive document. Here are some additional tips:
- Don’t assume everything is covered: The COI might only list specific types of coverage. If you have any doubts, ask for clarification or request to see the full policy.
- Coverage limits matter: Ensure the coverage limits outlined in the COI are sufficient for your needs. For example, a low general liability limit might not adequately protect you in case of a major accident.
- Request an updated COI periodically: COIs can be canceled or altered. Request an updated COI periodically, especially for ongoing projects or rentals.
The Takeaway:
By understanding the additional information included on a COI, you can make informed decisions about the adequacy of insurance coverage. Don’t hesitate to ask questions if anything is unclear, and remember, a little extra effort in deciphering the COI can go a long way in safeguarding your interests.