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Thread: Insurance certificate

  1. #1
    Junior Member Titan Limousine's Avatar
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    Default Insurance certificate

    When I use another company regularly for services to back me up should I get a copy of there insurance certificate under my company name. What is the purpose of this?

    I remember when I drove for another company locally they asked me to have by insurance provider sent them a certificate with them as a certificate holder.

    What is this?

    Should I do the same with an IC who has his own car and insurance.

    Thanks,
    Ankur Shah
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  2. #2
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    Quote Originally Posted by Titan Limousine View Post
    When I use another company regularly for services to back me up should I get a copy of there insurance certificate under my company name. What is the purpose of this?

    I remember when I drove for another company locally they asked me to have by insurance provider sent them a certificate with them as a certificate holder.

    What is this?

    Should I do the same with an IC who has his own car and insurance.

    Thanks,
    This is the only way to protect yourself. Although your insurance broker could explain it better then I can:

    When a client books with you and the service is provided by someone else, in the event of an accident the client is going to sue you because you were the company with which they booked. By having the other limousine service name you on a Certificate of Insurance (binder) (1) it tells you that they are insured as per the policy limits shown on the binder and if they have a lapse in coverage you will be notified by the insurance company. (2) In the event that you are sued for an incident in their car (accident) you are covered.
    Rick E.
    City Limousine Sales
    √XTS Livery Sedans√Escalade ESV Livery Package SUV's√Lincoln & Cadillac Limousines & Funeral Coaches by Federal Coach√GMC Professional Grade SUV's & 15 Passenger Vans√Cadillac & Buick Passenger Cars, Crossovers, and SUV's.

    ~Stupidity might be hereditary, but ignorance should be painful!~

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  3. #3
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    A certificate of insurance (COI) is nothing more than a piece of paper that informs the certificate holder of the coverages that the insured has at that point in time. It is not a guarantee of coverage and it does not mean that the certificate holder is insured either nor does it guarantee that the holder will be notified if coverage is cancelled or altered.

    In your proposed situation Ankur, even if the operation that you farm a run to has insurance this does not mean that you are free and clear of any liability. Your exposure would be determined from the contracts between all parties.

  4. #4
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    [QUOTE=Limo Insurance King;72232]A certificate of insurance (COI) is nothing more than a piece of paper...It is not a guarantee of coverage and it does not mean that the certificate holder is insured either nor does it guarantee that the holder will be notified if coverage is cancelled or altered.
    QUOTE]

    Phil,

    I had always been under the impression that when you are issued a certificate, the insurance carrier will notify you if the policy lapses, is changed, or altered. In fact, isn't that the very reason that lenders and lienholders require certificates naming them, so that they are notified if a vehicle in which they have an interest is not properly insured?
    Rick E.
    City Limousine Sales
    √XTS Livery Sedans√Escalade ESV Livery Package SUV's√Lincoln & Cadillac Limousines & Funeral Coaches by Federal Coach√GMC Professional Grade SUV's & 15 Passenger Vans√Cadillac & Buick Passenger Cars, Crossovers, and SUV's.

    ~Stupidity might be hereditary, but ignorance should be painful!~

    www.citylimosales.com

  5. #5
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    You are correct that lenders want a COI, but they don't care so much for the COI but what it has in the remarks section. The lenders want to see that they have been endorsed as the loss-payee/lien holder/lessor/additional insured (AI)/etc. in the remarks section. When they are listed as such, at this time the company has an obligation to treat them as an insured.

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