May 3, 2024
Who needs a Certificate of Insurance in Ontario?
You should know what a Certificate of Insurance is if you run a business.
You’ll also want to be clear when you need one. This document verifies business protection and can even help you secure new customers.
Businesses should be prepared to provide valid coverage to clients to prove they have insurance and are accurately covered for any accidents or damages. Whether you are a business owner or general contractor, you'll benefit from reading this blog to understand what a COI is when you need it, and how to obtain one.
What is a Certificate of Insurance?
A Certificate of Insurance (COI) is a document that summarizes the policy and legal terms of your business insurance. An insurance company or broker issues this certificate. It can be given to a third party as evidence of coverage. It is an essential document for many industries and business owners in Ontario.
When you contact our team about small business insurance, you'll learn more about your specific needs and obligations.
A COI will display details in a format that is easily read and clearly outlined. The following basic information should always be located on your COI:
- Policyholder name and business.
- The effective date to begin and end.
- Type of coverage with policy limits.
- Name of the insurance company.
- Additional insured (the names of other parties protected during the project)
Think of a COI as your insurance pink slip for your business. You need it to prove you have insurance if requested, just like you need to show proof of car insurance.
Types of Certificates of Insurance
A Certificate of Insurance provides information about the types of insurance policies that the insured party holds. This information includes the insurance company's name, policy number, and policy effective dates. It also includes details of the coverage limits and the types of covered risks.
There are different types of Certificates of Insurance, depending on the coverage required. The most common types include:
- General liability : Evidence for third-party bodily injury and property damage. It is often required by businesses as proof of their general liability insurance.
- Workers' compensation: Provides evidence of coverage for work-related injuries and illnesses suffered by employees. Employers often require it as proof of their workers' compensation.
- Auto liability: Provides evidence of protection for bodily injury and property damage caused by a company's vehicles. It is often required by companies that own or operate vehicles as proof of commercial auto insurance.
- Professional liability: Provides evidence of a valid policy for professional services provided by a company or individual. It is often required by businesses that provide professional services, such as accountants, lawyers, or consultants, as proof of professional liability insurance.
When do I need a Certificate of Insurance?
You will need proof that you can cover the cost of a liability claim if there is an unexpected accident to a customer, employee, or property. Here are a couple of examples of when you may need a COI:
- When a potential customer wants proof that your business has insurance.
- You enter an agreement with another business.
- You apply for a business loan or other financial assets.
- If you are hired by a third party to do work on your property, such as renovations or installing a pool.
- If you are hosting an event at another venue or property you do not own.
- An external business supplies you with products. Consider looking into product liability insurance.
How to get a Certificate of Insurance
If you own a company, you will likely already have your insurer's proof of insurance document. If you can't find one, request another copy or download it from your insurer's website or app.
If you are requesting a COI from a company you plan to do business with, the business should be able to retrieve it from their insurer or provide the contact info for the provider. Even if the business offers a policy, check with the company – you want to ensure the coverage is legitimate. Check for the correct business details, expiration date, and effective date.
Getting the COI may take a few days to a couple of weeks – this is why planning is so important.
Certificate of Insurance FAQs
You can get a certificate of insurance in Toronto by following the same steps as anywhere else in the province. If you already have a policy, reach out to your broker. If you are looking to get insurance for the first time, get a business insurance quote. You’ll be provided with a certificate along with your policy documentation.
As a business owner, you should get a copy of your certificate of insurance when your policy is issued. You’ll likely need to show proof at some point.
As a property owner, before anyone works on your property, business, or home, you should have a written contract that includes a valid proof of business insurance.
A COI does not cost anything outside of what you pay in premiums. Some jobs or projects you’ll encounter may require additional coverage than you currently have, so you may need to pay an additional cost for endorsements to increase your coverage and policy limits.
A Certificate of Insurance will have the effective date and expiration date on it. They are in alignment with your current insurance coverage.
Make sure your business has a Certificate of Insurance
A Certificate of Insurance is important in many industries and is often required as part of contracts and agreements - they are crucial in establishing proof of coverage and helping to prevent misunderstandings or disputes.
