04-11-2016

So, you know that you need liability insurance, but what is a 'certificate of liability insurance' and why do you need one?

Certificate of Liability Insurance Explained

Whether you take out general liability insurance or a more specific policy that covers you the employer or your products, you will need a certificate of liability insurance to serve as proof of your coverage.

Also known as an accord certificate of liability insurance (ACORD), this one-page document will provide basic details about your liability insurance policy and what it covers in a schedule. It will show details such as the level of cover, policy number, term of cover and who the policy is with.

When you take out employers' liability insurance, you should display this certificate in a shared area of your business premises so that employees can see proof of the cover. A photocopy on a noticeboard or an electronic version on the business' computer system should be made known to all new staff.

Not doing this or not being able to provide one to a health and safety inspector, should they request one, can result in a hefty fine.

Why Do You Need a Certificate of Liability Insurance?

A certificate of liability insurance is evidence of your policy and many businesses will demand to see one in order to win work contracts. Why? Well, this will prove to the potential client that they're entering a deal with a business that is protected should the worst happen, and therefore they won't be majorly affected as a result.

Many companies will not take the risk on an individual or firm if it is likely they will be held liable for any damages or injuries as a result of others.

It is not uncommon for a client to ask to be added to the policy as a certificate holder. This will prove a policy exists, but does not give them any legal rights under the policy. Some policies will automatically include additional insureds, so it's important to check this before making any request to your insurer.

How Do You Get a Certificate of Liability Insurance?

A certificate of liability insurance should be provided, alongside policy documents, by the insurer when cover is taken out.

If you've lost your copy of the certificate of liability insurance, contact your insurance provider and they should be able to issue you with a new certificate via email or post.

Compare Liability Insurance Quotes Today!

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