The Delaware Business Insurance Update from CNC Insurance Associates Inc. " A Quick Explanation about Certificates of Insurance" 4-30-15

Every small business owner has experience with certificates of insurance. If you want to do business with vendors or take out loans, or sign contracts, a certificate will be requested. So lets quickly break down what a certificate is. First and foremost a certificate is not your insurance policy. It is not intended to replace the actual terms, conditions, and coverages in your insurance policy. The certificate is for informational purposes only and is only good the day it is printed. Why? Well insurance policies go through numerous changes during the year. You may add or subtract coverages or covered items. You may not pay your premium and cancel your insurance coverage. You may add policies to your insurance portfolio. With the dynamic nature of small business insurance, it is easily seen why certificates are only good the day they are issued. So why are certificates so commonly requested and used. The main reason is that most people can understand the simple format and design of the certificate.  They are usually one page too.
Certificates will continue to be used and circulated as a non binding representation of your insurance policies. Unfortunately they will also continually create a possible inaccurate picture of your insurance coverage the day after they are printed.
Until next time be careful out there and know your risks.


G. Kevin Nemith President CNC Insurance Assoc. & The Small Business Insurance Center
Serving DE, MD, VA, NJ, & PA
www.cncinsurance.com
www.bizinsurancetv.org

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