A certificate of insurance is the way for you to demonstrate and show another party that you have insurance that will cover you for certain types of losses. A certificate of liability insurance is usually mandated when you are an independent contractor for an organization and it shows the amount of the coverage, the insurance company and the expiration date of the policy.
If you are doing business with a company like buying the company’s product, services, or the company comes into your premises to do work or make a delivery, you should first ascertain whether the company is able to fulfill its obligations. This includes having sufficient liability insurance along with workers’ compensation insurance. By requesting the certificate of liability insurance, you will have proof that the company has coverage and it is valid. In addition, the certificate will give you information on the amount of insurance and whether it is sufficient for your needs. If the company does not have liability insurance, you will have to shell out all the claims.
Below is a sample letter requesting certificate of liability insurance and this must be typed on your company’s letterhead.
Your vendor or contractor’s name
Re: Contract #123456 or Description of work and Current Certificate of Liability Insurance
As a condition of doing business with our company, please ensure that you provide the endorsed Certificate of Liability insurance with limits of liability not less than $______.
The Certificate of Liability insurance must be provided directly from your insurance agent or insurance company.
Thank you for your prompt attention to this request.Yours truly,
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