Many small businesses who work with clients are asked for an ACORD certificate, but if you’re just starting out you may be unfamiliar with the term.
ACORD stands for the Association for Cooperative Operations Research and Development, they’re a non-profit that helps to set standards for the insurance industry.
An ACORD certificate of liability is a single-page document that shows evidence of your insurance coverage and the limit of your insurance policy. It gives a summary of the benefits and key elements contained in your policy, such as coverage types, insurance limits, policy numbers, effective and expiration dates.
As a business owner, having an ACORD certificate of liability gives your clients assurance that your business has the necessary insurance coverage. Insurance companies provide ACORD certificate of insurance (COI) for various policies, including:
- Professional Liability insurance
- Commercial Auto insurance
- General Liability insurance
- Workers' Compensation insurance
- Business Owner’s Policy (BOP)
- Errors And Omissions insurance
Why do I need a certificate of liability insurance for my business?
As small business owners, a certificate of liability insurance is often a requirement of business transactions. This insurance certificate is essential if a client wants proof you have insurance coverage.
Also, most companies will require any businesses they hire or partner with to have their own liability insurance to avoid bearing the sole responsibility for any damages to their property or thrid-party injury.
This document stands as proof when you’re signing a contract with a new client or leasing commercial property, that your business is protected. It contains all the important details of your insurance policy on a single sheet, making it much easier to share with clients.
What information can I find in my certificate of insurance (COI)?
You’ll find the following in your ACORD certificate of insurance:
- Your name and address
- Your policy number
- Your policy limits
- The name of your insurance agent and insurance company
- The effective and expiration date of your policy
- The types of insurance coverage you purchased
How do I get a certificate of insurance for my business?
With traditional insurance providers, it could take days or even weeks to receive your ACORD certificate. But, with CoverWallet, you can usually receive an ACORD certificate of insurance immediately. You can also request and manage your ACORD certificates all online.
Small business owners have a lot on their plate, but with CoverWallet you’ll have one less thing to worry about.