What is the primary function of a certificate of insurance?

The primary function of a certificate of insurance is to provide proof of coverage to interested parties. This document serves as a verification tool, demonstrating that an individual or entity has insurance coverage as specified within the certificate. It typically outlines key details such as the types of coverage, policy limits, and the effective dates of the insurance.

By fulfilling this role, the certificate allows third parties—like clients, vendors, or regulatory bodies—to confirm that the insured has the necessary insurance protection in place. This can help mitigate risk for those who may be relying on the insurance coverage in various transactions or contractual agreements.

Certificates of insurance are not meant to replace actual insurance policies; they are summaries of coverage and do not provide the comprehensive details found in the full policy documentation. Additionally, they do not serve as legal contracts themselves; instead, they reference the actual insurance policy which governs the terms of the coverage. Lastly, while a certificate may be involved in claims processes, it does not inherently allow for more claims to be filed without approval.