What is a Certificate of Insurance?

A Certificate of Insurance is simply a document that specifies who is insured and what coverage is available under a given policy.  Its purpose is to provide evidence that your agency can satisfy various obligations: to pay liability losses it has assumed under contract, or to pay for loss or damage to property or autos for which it is responsible.

Are there different kinds of Certificates of Insurance?

There are three basic types of Certificates of Insurance, each of which serves a different function: 

·         The Evidence of Insurance (EI) Certificate is just that: proof that insurance coverage exists and details the coverage available.  EI Certificates are often requested by agencies such as the Department of Motor Vehicles.  EI Certificates do not extend any additional coverage to the holder.

·         The Additional Insured (AI) Certificate specifies additional individuals or entities to be protected by your policy.  AI Certificates are often requested in the case of business relationships, such as a contract between a nonprofit and a governmental agency.  This type of certificate is the most commonly requested by our members.

·         The Loss Payee (LP) Certificate specifies that in the case of a loss, the payment will go to a named individual or organization.  The Loss Payee Certificate is often issued to a bank or car leasing firm, who holds title on a specific vehicle and will be paid if the vehicle is damaged.  The LP endorsement is frequently combined with an Additional Insured endorsement on a certificate.

How do I know if I need a Certificate of Insurance? 

You almost always find out you need a Certificate of Insurance when someone, such as your contract-holder or a lease company, asks you to furnish it.  If you don’t need to show proof of insurance, or list anyone as an Additional Insured or Loss Payee, you don’t need a certificate. 

Not everyone needs Certificates of Insurance; only about half of our members have certificates on file.

Do I need to renew my Certificates of Insurance each year? 

A Certificate of Insurance only is good for the policy period listed, so your certificates will expire each June 30th.  We automatically update and reissue members’ certificates each year unless we receive other instructions. 

Every April, we send a list of current certificates to each member for their review, so members can edit the list and send corrections back to us before we renew their certificates.  We really appreciate this assistance from our members, as it prevents us from creating unnecessary or incorrect certificates. 

What do I do when someone tells me I need to furnish them with a Certificate of Insurance?

Call or email us! 

You will need to tell us the name and address of any Additional Insured or Loss Payee that will be on the certificate.  If the certificate is to specify a Loss Payee, she also needs to know the year, make, model and partial Vehicle Identification Number (VIN) for any vehicle that will be specified on the certificate.

After we create the certificate, we will mail the original to the person who requested it from you, mail a copy to you, and keep a copy here on file.

About Public Utility Commission (PUC) Filings

The Public Utilities Commission requires a few of our members to have a special certificate on file.  The TL-1000 form is required of “for hire carriers” such as paratransit operations. 

The TL-1000 only has to be renewed if we change excess carriers.  We have already done the PUC filing necessary for this year’s change, but you may receive a notice anyway.  Just fax it over and we’ll confirm that the new form has been filed with the PUC.

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