What does a certificate of insurance serve as?

A certificate of insurance serves as a document that lists the types and amounts of insurance coverage that an individual or business has. This document provides a snapshot of the insurance policies in place, detailing coverage types, limits, and effective dates. It is commonly used to demonstrate proof of insurance to third parties, such as clients, vendors, or regulatory authorities, ensuring that the insured party maintains appropriate coverage.

This certificate does not summarize claims, represent an insurance policy itself, or serve as a proof of loss. Instead, it functions as an informative tool to convey the necessary insurance details without delving into specifics like past claims or policy terms. Understanding this distinction is crucial for recognizing the practical role that a certificate of insurance plays in various business and contractual situations.