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Certificate of Liability Insurance

A Certificate of Liability Insurance (also called an Insurance Certificate, a Certificate of Insurance, and Proof of Insurance) is a one-page summary of the important information included in a business insurance policy. Information in a typical Certificate of Liability Insurance includes…

  • Policy limits.
  • Deductible.
  • Key areas of coverage.
  • Contact information for insurance representatives.
  • Policy expiration date.
  • Names of any additional parties covered by the policy (i.e., additional insureds).

Certificates of Liability Insurance are useful because they allow contractors, freelancers, and small-business owners to demonstrate proof of insurance and share coverage information with clients through a single-page document rather than an entire insurance policy.

Take a look at this sample Certificate of Liability Insurance [PDF] to see what a typical cert looks like.

How Do You Get a Certificate of Liability Insurance?

When a business contract requires you to show proof of insurance, you need to have a Certificate of Liability Insurance. But you don’t get this certificate by purchasing it directly. Instead, you receive a certificate after buying an insurance policy.

When you buy insurance through Tech Insurance, you can get a Certificate of Insurance for any of the following policies:

If you already have insurance, getting a certificate should be easy. Current Tech Insurance customers can request a certificate by completing our Certificate of Insurance Request Form, which lets you print your certificate immediately.

If you don't yet have business insurance, you can secure proof of insurance when you purchase a policy. Start the process of getting coverage and a Certificate of Liability Insurance right now by filling out an online insurance application.

When Do You Use a Certificate of Liability Insurance?

Certificates of Liability Insurance can be used to demonstrate proof of coverage, which is often a key step in securing a new contract.

For example: Imagine you're about to close a contract with a new client. You'll be installing new sales software on their computers and overhauling a slow, outdated network. However, the contract requires you to have a Certificate of Liability Insurance that shows you have $1 million in Errors and Omissions Insurance before they’ll sign any paperwork.

If you already have an E&O policy with a $1 million limit, you can request a Certificate of Insurance from your provider. If you don’t yet have insurance that meets these requirements, you can typically secure a new policy and certificate in as little as 24 hours.

Why Do Clients Require You to Have a Certificate of Liability Insurance?

A client may ask you to provide a Certificate of Liability Insurance for a number of reasons, including…

  1. Their insurance provider requires proof of coverage. Many insurance providers require proof of insurance for all contractors and business partners of their policyholders. Your Certificate of Liability Insurance serves as proof of your coverage.
  2. They want reassurance that you're covered. Even if their insurance providers don’t require proof of coverage, your clients may want to know you have business insurance. Why? Because when you have a policy in place, it means you have the financial backing to compensate them for losses if anything goes wrong.
  3. They want all your insurance information in one place. Certificates of Liability Insurance are concise and information-dense. Your clients can easily find any information about your coverage they need without combing through pages of paperwork.

Insurance certificates simplify the process of signing contracts. They provide a quick way for businesses to exchange important information about their coverage in an easy-to-read document they can keep on file.

How Do You Add Additional Insureds to an Insurance Certificate?

IT project managers often hire independent contractors and subcontractors. Project managers must make sure that every party has proper insurance coverage and complies with the terms of their employment contract.

If you're leading an IT project, you will likely have to do one of the following…

  • Make sure subcontractors have Errors and Omissions Insurance and General Liability Insurance. Depending on the project, it might make sense to require each contractor to have their own policy. If you do this, you'll ask each contractor to provide proof of insurance for you to keep in your records.
  • Add contractors as "additional insureds" under your E & O and General Liability policies. If you're working on a project and hire an independent contractor to assist you, you may need to cover their liabilities. By paying a small fee, you can temporarily list a subcontractor as an "additional insured" on your policy. This extends your coverage to work completed by your contractors on behalf of your business.

(Note: adding an additional insured doesn't mean that they are fully covered by your policy. Instead, it means that your insurance will cover some of their liabilities.)

Disclaimers in Your Certificate of Liability Insurance

Most Certificates of Liability Insurance include a disclaimer that notes that the document is meant for informational purposes only and cannot be used to collect actual insurance benefits. This legal distinction means little in practice; if you have an insurance policy and a Certificate of Insurance for that policy, you should have no problem collecting benefits when you need them.

Certificate of Liability Related Resources


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