View Full Version : Insurance Questions

09-12-2007, 08:54 PM
More specifically my questions concern certificates of insurance. I have been given the task in work of issuing them to our customers. I have to request the certificates online through an intranet link and the help pages are anything but; it seems that they were written by someone with the intent of confusing me further.

Are they used to prove to our customers that we have liability, workers comp and auto insurance? What is an umbrella policy? The one thing that has me most confused are additional insureds. Why does the customer add other companies as additional insureds to the certificate?

Bruce Hooke
09-12-2007, 10:02 PM
I am no expert in this, but my understanding is that a certificate of insurance proves that you have insurance, which particular kind of insurance depends on the situation and should be listed on the certificate, I would presume.

I think an umbrella policy is a general liability policy, but I am not sure about that.

Additional insureds are, as I understand it, other entities that are being explicitly covered by your insurance policy, so if a lawsuit is filed both you and the additional insured you will both be covered. Presumably this coverage is limited to the situation that brings you and the other company together. For example, if I get insurance to cover an event I am holding, the site where I am holding the event might insist that they be listed as an additional insured, so if someone gets hurt at the event then the insurance I purchased will cover claims against both me and the owners of the space, however, it would not provide any coverage to the owners of the space if someone sues them over something that happened at an event someone else is holding in their space a week later.

The Bigfella
09-12-2007, 10:12 PM
or if I lease you a computer, you have it covered under your insurance

Gary E
09-13-2007, 03:23 PM
or if I lease you a computer, you have it covered under your insurance

That idea of requiring ME to buy insur to cover YOUR property is just nutz...
If you want it insured to pay you in case some disaster happens... YOU insure it...
I am going to assume one thing here... your in that biz and have thousands or at least a bunch of them out on lease and will get a much better insur rate than I will...

Why dont I take out some life insur on YOU ??

Bruce Hooke
09-13-2007, 03:56 PM

I presume you've rented a car at some point. If you have, you were probably offered the option of getting insurance through the rental company or using your own insurance. Clearly it makes no sense to pay for insurance from the rental company if you already have insurance to cover the situation and typically have to pay your insurance company nothing extra to cover the rental car. I imagine the same dynamic would apply when renting a computer. A certificate of insurance in this case would simply be proof that you already have insurance, and, quite reasonably, some rental companies might insist that you either have your own insurance or buy insurance from them. Yes, they could automatically include insurance but that would cost extra and drive away the people who don't need the included insurance.

09-14-2007, 09:03 AM
The COI's are proof that your company is covered by insurance.

Anyone requesting the certificate should be able to send you explicit instructions on the coverages required and who, if anyone, is to be named as an additional insured.

Contracts or purchase orders from the requestor or between you and them should spell out if they have the right to request the certificate and to be named an additional insured.

Your insurance issuer ought to be able to answer your questions.