Certificates of Insurance Under Scrutiny

The days of changing certificates of insurance to match contract requirements or holder requirements are over. First, the new 2010 certificate is copyrighted and agents cannot change the terms or wording. Also many States now have regulations against agents or brokers changing the certificates and insurance professionals could lose their license if caught. So what is the answer going forward? Not really sure. To clients they don't care as long as the certificate holder is satisfied. Saying no to a client that has promised insurance coverages that cannot be delivered is very tough for agents. In addition many clients sign contracts in which insurance terms are not avaialble or impossible. These business owners could face possible breach of contract claims. So it is time for the industry and business to really understand certificates and what they mean. A certificate of insurance is not an insurance policy. Also contracts are going to have to be written so that insurance terms can be obtained. The answer lies in getting rid of certificates and send copies of insurance policies to holders. In the email age this is not a problem. Maybe when holders or those that let contracts have to read 1000 page insurance policies to understand if their requirements are met, they will change what they are requiring. Until next time be careful out there and know your risks. K

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