A certificate of insurance confirms the coverage for your business. Customers and vendors may ask for one as part of their own process to ensure they are protected when they work with you. A certificate of insurance usually lists the type of coverage you have (i.e. property, general or professional liability, etc.), who is insured (usually you or your business), the name of the insurance company issuing the policy, the limits and deductibles, and the policy’s effective and expiration dates.

A certificate of insurance is proof that you have a valid policy. Certificates are often requested as part of contracts, though the physical document doesn’t grant or change any coverage to you or any other party – it is simply evidence. Before signing a contract, you should always read your policy to learn how you are covered and what is excluded.

Sometimes a person or company wants your proof of insurance with their name listed as a certificate holder. This is a common request, and doesn’t change your insurance as holders don’t have legal rights under a certificate. Being a certificate holder simply establishes that an insurance policy exists. The holder will get protection under your policy only if the business or person is named as an additional insured.