The standard Certificate of Liability Insurance is simply a verification of coverages; without additional reference and contractual solidification a certificate CAN NOT provide coverages to the Certificate Holder or Named Additionally Insured.
In the area titled “Coverages” on the Acord 25 Certificate of Liability Insurance the following statement appears:
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS. EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
Simply put, without proper wording on the certificate, proper written agreements between the parties you are doing business with and proper endorsements attached. The coverages on the certificate can be worthless to you and the additional insured parties. This will cost you money and the clients you work for money, in the event of a claim.
How long should the Certificate of Insurance verification process take for a Service Provider to complete?
Most certificates are verified and compliance status is updated within 48 hours. On rare occasions a vetting process could take longer depending on your company’s risk category, your agent’s understanding of coverages necessary and policy limits.
If found Non-Compliant what steps should a Service Provider take to become Compliant?
Simple Non-Compliance for policy renewals or coverage limits can usually be resolved by contacting the agent and having them send updated certificates.
Complex Non-Compliance for coverages and contractual issues may require a new policy or additions to an existing policy. If this type of Non-Compliance issue arises, we will have a ASN Support Team Member work with you and your agent to find a solution. If a solution cannot be forged, then we will consider recommending alternate sources for insurance coverage. If no solution is available and your company can no longer perform services for the management company, you registered with, you will be considered for a refund or discounted package.