What does a Certificate of Insurance provide to the insured after a policy is issued?

A Certificate of Insurance serves as a summary of the policy's coverage. It is a document issued by an insurance company that outlines important details about the insured's policy, including the types of coverage provided, the limits of liability, and any applicable deductibles. This certificate is often used to provide proof of insurance to third parties, helping to confirm that insurance is in place.

The range of details in a Certificate of Insurance may vary, but its main purpose is to provide a quick, concise overview of the insurance policy without going into the full terms and conditions that are detailed in the actual policy documents. This makes it a practical tool for both the insured and any parties that need to verify the coverage provided.

While endorsements and lists of covered perils may be relevant to specific aspects of a policy, they do not capture the summarizing function of the Certificate of Insurance. Similarly, a premium payment receipt serves only to confirm a payment has been made and does not provide insights into coverage details. In essence, the Certificate of Insurance acts as an easily accessible reference that highlights key elements of the insurance coverage for the insured and their stakeholders.