What is a Certificate of Insurance?

A Certificate of Insurance is indeed a summary of coverage under a policy. This document serves as proof that an insurance policy exists and outlines key details such as the types of coverage provided, the policy limits, and the effective dates. It is typically issued by an insurance company or agent to a third party, often in a business context, to verify that adequate insurance coverage is in place for specific operations or activities.

The importance of this document lies in its role as a communication tool between the insurer and parties requiring proof of insurance, helping to ensure that stakeholders are aware of the coverage and its limitations. It does not request additional coverage, approve fraudulent activities, or signal policy cancellation, making the summary function the core utility of a Certificate of Insurance.