Certificate of insurance (COI),
Definition of Certificate of insurance (COI):
A certificate of insurance (COI) is issued by an insurance company or broker. The COI verifies the existence of an insurance policy and summarizes the key aspects and conditions of the policy. For example, a standard COI lists the policyholder's name, policy effective date, the type of coverage, policy limits, and other important details of the policy.
Without a COI, a company or contractor will have difficulty securing clients; most hirers will not want to assume the risk of any costs that might be caused by the contractor or provider.
Document issued by an insurance company, it certifies that an insurance policy has been bought and shows an abstract of the most important provisions of the insurance contract. But it is not a substitute for the actual policy, and is normally a non-negotiable document-it cannot be assigned to a third party, and is unacceptable under the terms of a letter of credit and in making a claim. In life and health insurance a COI is issued to the members of a group insurance plan, evidencing their participation. In marine insurance (where cargo is insured against a floating insurance policy) COI serves to assure the consignee that insurance is in effect for the goods in transit and a proper policy will follow. Also called insurance certificate.
How to use Certificate of insurance (COI) in a sentence?
- A certificate of insurance (COI) is issued by an insurance company or broker and verifies the existence of an insurance policy.
- Small-business owners and contractors typically require a COI that grants protection against liability for workplace accidents or injuries to conduct business.
- I finally got my certificate of insurance and it made me really glad because I had been wanting to have insurance for a long time.
- A company like AAA will issue a certificate of insurance to provide proof of insurance such as in the case of car insurance.
- You need to make sure you have a good certificate of insurance so that you know you are fully covered where you need to be.
- It is vital that the client checks the policy coverage dates and the limits of the policy.
Meaning of Certificate of insurance (COI) & Certificate of insurance (COI) Definition