A certificate of liability insurance form is used to establish proof and terms of insurance package which is active and continue. This form is basically a verification which is requested to validate active insurance package. As per normal terms, it includes limit and type of insurance, company name, name of individual insured and terms of insurance. A certificate of insurance form should be filled properly and clearly. An authentic insurance form requires signatures of officials which will make this certificate worthy and reliable. This certificate is also known as insurance certificate form which serves the same purpose.
Details of Certificate of Liability Insurance
A certificate of liability insurance form consists of items list wise, on one page regarding your insurance liabilities, starting and ending dates and coverage limits. Usually, a third party used this form to confirms the valid insurance coverage you have before going to enter into any sort of agreement or deal. It is also a “must to have” requirement for many multinational level deals because they know, individual has sufficient coverage back to support deal.
Importance of Certificate of Liability Insurance
In normal course of business, people need to trust to other parties in order to get more business. Every business owner claims to be competent, effective and trustworthy but unfortunately it is not the reality. Therefore, a certificate of insurance can be a medium between both parties and can help to continue business deal. By asking a valid insurance certificate, a business individual can start any sort of agreement with liability limited to coverage limit. These can be as follow;
1- Before getting a furnished property on rent.
2- Any agreement where tenant will use commercial property with machinery.
3- Before entering a manufacturing contract prior to start manufacturing.
4- Before entering a designing contract for building or apartment.
5- Before entering into Government agreement where to construct a road or building.
Content of Certificate of Liability Insurance
Like other certificates, it has content of common as well as specific nature. However, following are most commonly used content;
Date of form issued
Name and Address of Agent who issued the Form
Name and Address Insured or business who covered the risk.
Insurance coverage minimum and maximum limits.
How much amount in Dollars, each insurance policy provides to coverage the secure amount.
Description of policy secured in agreement.
Terms and conditions valid for coverage of insurance policy.
Signature of officials on form.
