Small business owners of all types can benefit from a certificate of insurance. Often abbreviated as COI, these documents prove to your vendors, customers, and anyone else that your company does business with, that you have the right types of insurance in place, just in case something unexpected occurs.
But when do these COIs come into play? How can you obtain one? And exactly why do you need a certificate of insurance? We’ll answer all of those questions here.
What Is a Certificate of Insurance?
A COI is exactly what it sounds like: it’s an official document provided by your insurance agency proving that you have the asked-for insurance policy. You can obtain a COI for any type of insurance, from general liability to specific business plans. There are no limits, except for policies that you don’t have in place. Certificates of insurance are similar to the insurance cards that you keep in your wallet to prove that you have car insurance, only they have a bit more depth to them, as they are used to reassure customers, clients, vendors, and more.
When Would You Need a Certificate of Insurance?
There are numerous scenarios where you might need a certificate of insurance, or COI, in order to prove that your policies exist. They include those featuring:
Vendors – If your business needs to buy products or materials, you’ll need to show your vendors that you have everything from transportation insurance (for those materials on the road) to liability policies and more. The other companies that you do business with will want to know that your business is protected.
Clients – While every business can benefit from having a COI on hand, it particularly comes in handy when you run a construction or landscaping business, or really any type of company that works in the trades. Your clients need to know that they could be reimbursed properly should something go wrong during a job, such as the breaking of a window or the incorrect installation of a door.
Employees – Are you worried about not being able to attract employees because the work that your manufacturing company does falls on the “dangerous” side? You can show potential workers that you have workers’ compensation insurance, just in case.
Obtaining a Certificate of Insurance
Thankfully, insurance companies make obtaining these COIs easy. You just need to contact your insurance agency and request one. Some insurers might also have online request forms or include a COI as an option in your account portal, so that you can pull one up and print it out without having to contact anyone. With that said, this can vary a lot, based on the individual insurance company and how they have things set up.
Contact Spivey Insurance
Do you need to obtain a certificate of insurance on an existing policy with Spivey Insurance? Do you want to set up a new business policy or two in order to meet requirements? No matter what you need insurance-wise, contact us. Our knowledgeable agents can help.