Proof of Insurance

The old way of sharing your certificate of insurance (COI) looked something like this: send multiple emails or play phone tag until everyone got what they needed. Slow, right?

What is a Certificate of Insurance?

A Certificate of Insurance is a document, either electronic or physical, which shows anyone you work with that you have a valid business insurance policy. Most COI are from a company called Policy Schedule, and are sometimes referred to as “Proof of Insurance certificates.” If you’ve had an insurance policy for some time, you are probably familiar with the PDF version, and may even carry a physical copy around with you. Many companies or individuals will ask you for it, in order to be certain that if something goes wrong, they won’t be stuck with a large bill.

Why is a Proof of Insurance Important?

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  • Having a Certificate of Insurance shows potential employers or clients that you are insured.
  • That means that in the event of an unforeseen scenario like an injury or property damage, there is minimal risk of out-of-pocket payouts or unpleasant and expensive litigation, for you, or your customer.
  • The ability to show proof of insurance is so important that it is often requested as a first-step prerequisite before anything else in the employment process.
  • Many employers require showing proof of insurance in the form of an officially generated COI before letting personal trainers train clients, painters paint houses, or handymen so much as pick up a hammer.
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Why it Matters to Your Customers

Some businesses also involve risks to personal safety and expensive equipment. For this reason, it’s especially important for business owners such as photographers, construction, or fitness professionals to obtain liability insurance as protection in the event of an unforeseen scenario such as injury, customer dissatisfaction, or equipment breakage or theft. In all cases, having proof of liability insurance available to show in a flash will go a long way in showing your suitability and professionalism for the job.

  • Customers who want to protect their financial interest and ensure your coverage limits would pay for potential damage will request proof of insurance ahead of signing a work contract with you.
  • Consider this scenario: a professional custodian working at a local high school accidently breaks through an important pipe while trying to fix a toilet.
  • A huge mess is the result, with plenty of accompanying cleanup and repair costs.
  • It’s the janitor’s fault, and he can be expected to be held monetarily responsible for the incident.
  • With Socovered, the process of getting a COI is streamlined and free. You have complete flexibility when and where you provide a COI to a prospect or existing customer.
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