A standard certificate of Insurance is a snap shot in time. It tells a certificate holder how much insurance coverage an insured has in place, the effective dates of the policies, and the name of the insurance carrier. Requesting a standard certificate is straight forward and quick for an agent to process.
However, when a certificate holder requests to be added to your policy as an “Additional Insured”, this means they intend for your policy to provide primary coverage for them should you be negligent and cause damage or bodily injury to others. This can be an issue if you have no formal contract with them or a contract that has not been reviewed by an attorney. Here’s why!
‘Additional Insured’ status requires a attention to detail
As the world has become more litigious, contract requirements and language have also become more complex. Providing a certificate holder with ‘Additional Insured’ status means that they receive many of the same benefits as you under your policy. Many insurance carriers have changed their ‘blanket additional insured endorsements’ to provide coverage only when there is a written contract in place. If you don’t have a contract, ‘Additional Insured’ status may still be available, but it may require an additional endorsement for an additional premium.
Contract wording can help or harm you
A good contract defines the scope of work, budget, schedule, and governs all parties’ obligations in the event of a loss. A well-drafted insurance requirement provision can help decrease the risk associated with a particular project, or shift the consequences of that risk to another party. However, if you are not careful, contract language can extend your liability exposure beyond the scope of work you are doing. That's why it's extremely important to fully understand the contract details and to what you are committing. It is ALWAYS suggested that an attorney review your contract before you sign it in order to help identify potential problem situations.
How to request Certificates of Insurance at Murphy Insurance
There are a couple ways you can request a Certificate of Insurance:
Website - Under the Resources menu you’ll find “Certificate of Insurance Request”. We provide an online form that prompts you for the information we need to issue a certificate. This can help avoid delays caused by missing information.
Email - email@example.com – If you’re familiar with the information needed to issue a certificate, you can email the Murphy Insurance certificate team. Remember to provide:
- a phone number where you can be reached if we have questions
- the certificate holder’s full name and address
- an email and/or fax number where to send the certificate
- if additional insured status in required, and whether or not you have a written contract
If you have any questions about the information above or Certificates of Insurance in general, please contact us. We are always glad to assist you.