What Is Typically Included on a Certificate of Liability Insurance?


Quick Answer

A certificate of liability insurance typically includes contact information of the insured business and the insurance company, details of the business's liability policy and its limits, and a summary of the work the insured business is doing, reports About.com. It also contains the name and address of the company requesting the certificate and possibly a statement that it is additionally insured. The certificate may also express the insurance company's obligation to notify the contracting company if it cancels the policy.

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Full Answer

Although certificates of liability insurance are not actual insurance policies, companies request them of contractors as proof of coverage, explains About.com. Companies want assurance that the liability policies that contractors have meet minimum standards of protection that their contracts outline. Certificates stipulate monetary limits for each covered occurrence as well as a general aggregate limit. They also detail contractors' commercial auto coverage.

If a contract between a company and contractor requires that the company must become an additional insured on the liability policy, the contractor must instruct the insurance company to add a policy endorsement, and the certificate of liability must mention this, according to About.com. Although state laws regarding certificates of liability insurance vary, they all prohibit false statements, extending insurance rights to uncovered individuals, and requesting or altering certificates to provide misleading details.

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