Chances are this is not the first time you’ve heard the term “certificate of insurance.”  This document is often requested in business transactions prior to the commencement of work.  The International Risk Management Institute (IRMI) defines the certificate of insurance as, “A document providing evidence that certain general types of insurance coverages and limits have been purchased by the party required to furnish the certificate.”What may be new to you are some of the industry terms used that alter the certificate or broaden the coverage.  Here are a few of the key phrases to watch out for when you get a request for a certificate of insurance:

• Additional Insured: In a nutshell, this term names a person or organization as an insured under your policy.  Additional insureds can added to your policy on a blanket basis, but may have to be added via endorsement.

• Waiver of Subrogation:  This term involves your insurance company’s relinquishment of their right to collect from another (negligent) party.  Under some circumstances it is already included in a general liability policy but must always be added via endorsement on a workers compensation policy.

• Notice of Cancellation:   This phrase refers to the number of day’s notice the insurance company will give before they will cancel the insurance policy.  As respects nonpayment of premium, ten days notice is mandatory in the State of Wisconsin.

Insurance certificates can be complicated and scary if you don’t work with them frequently.  Fortunately, The Starr Group is familiar with these types of requests – and would be happy to discuss them with you!