Preparing insurance certificates is not like painting by numbers. Standard insurance certificates are not a blank canvas for you to adjust the colors and contents as you see fit. Far too often, we have witnessed businesses, public authorities and others atempt to fashion something from standard insurance certificates that was not intended. Dissatisfied with the information only nature of insurance certificates, some have demanded specific modifications to the standard Acord 25 form to create legal obligations for the insurers. These atempts to circumvent the evidence-only nature of the certificate are not likely to create an actual obligation for the insurer, but are more likely to lead to unnecessary and avoidable problems and even litigation with the insured and their insurance broker. Few insurance companies want to see
CertainCert Insurance Certificate Management & Tracking Blog
Topics: liability certificate, certificate of liability insurance, additional insured, waiver of subrogation, primary wording, cancellation, insurance requirements, liability insurance, insurance limits
Reviewing a number of issues on the web, I came across a post from David Sullivan, Risk Managers, LLC, in LinkedIn Answers. The changes in the 2009 ACORD 25 have happened. ACORD has discontinued use of previous versions of the ACORD 25 form. Use of previous versions of the ACORD 25 may lead to violation of user licenses with ACORD. While past form changes encouraged by ISO about additional insured endorsements and other issues were slow to be adopted or were ignored, the radical changes in the 2009 ACORD 25 should encourage everyone to review their insurance requirements again from the ground up. Everyone should carefully review
Topics: insurance management software, insurance tracking, liability certificate, certificate of liability insurance, insurance certificates, insurance certificate tracking, additional insured, waiver of subrogation, primary wording, insurance requirements, liability insurance, insurance limits
Your business likely depends on one or more other businesses. It is also likely that your business depends on more than one type of business partner. Risk profiles are the specific insurance requirements for each type of business you may work with that are unique to that trade, location or other necessary sorting category. Common reasons for risk profiles include but are not limited to: different coverage requirements, different limit requirements, different coverage periods, different locations. Insurance certificate management software is essential to manage and keep track of these differences.
Commercial Real Estate Developers
Commercial real estate developers rely on architects, engineers, and other professionals as well as contractors, subcontractors and their suppliers.
Topics: insurance management software, insurance tracking, certificate of liability insurance, insurance certificates, insurance certificate tracking, real estate property owner insruance requirements, insurance requirements, lender insurance requirements, risk profiles, real estate developer insurance requirements
Franchises have special risk transfer needs and care should be taken to ensure that everyone is protected as they intend to be. The essential questions are:
- Who is protecting whom?
- What protection is desired?
- How is that protection evaluated?
- What are your procedures to follow up when deficiencies arise?
- Who is verifying compliance? (in-house or out-sourced)
Cost and ease of use are factors, but scope and quality are also essential. Ignoring or avoiding the problem is no solution. Whether you choose to go it alone, use insurance certificate compliance software, use an internet based insurance certificate compliance tool, or outsource insurance certificate compliance to your insurance broker or a third party, find a comprehensive solution that will work best for you.
Depending on the franchise business, there are many risks including:
Topics: insurance management software, insurance tracking, liability certificate, certificate of liability insurance, insurance certificates, insurance certificate tracking, additional insured, primary wording, cancellation, insurance requirements, liability insurance, insurance limits, Insurance Certificate Request Letter
Clear and frequent communication is essential for successful insurance certificate management. Insurance certificate management software simplifies insurance certificate compliance letters and compliance. CertainCert has automated the creation of custom insurance certificate compliance letters for your use. Use of these simple letters speeds communication of your insurance requirements, deficiencies when they occur, requests for renewal certificates when required. CertainCert insurance certificate compliance letters include:
Topics: insurance management software, insurance tracking, liability certificate, certificate of liability insurance, insurance certificates, insurance certificate tracking, additional insured, waiver of subrogation, primary wording, cancellation, insurance requirements, liability insurance, insurance limits, Insurance Certificate Request Letter
Time and again we witness efforts to find a simple excel spreadsheet or other software to manage insurance certificates for one type of business or another. Sadly, most of these discussions focus on who the insured is and the expiration dates of that insured's coverage. Insurance certificate management is much more. There are many pitfalls ad hoc solutions generally do not address, including but not limited to:
Topics: insurance management software, insurance tracking, liability certificate, insurance certificates, insurance certificate tracking, additional insured, primary wording, insurance requirements, liability insurance, Insurance Certificate Request Letter
Insurance certificate tracking starts with a number of essential understandings and decisions. One of these decisions is the insurance limits you require as a certificate holder. Understanding that you may have more than one risk profile and likewise more than one set of insurance limits, the right insurance limits for your contract insurance requirements starts with an evaluation of your own insurance limits.
There are essentially, six factors to weigh:
1. Third Party Insurance Requirements
Regardless of your business size or industry, most businesses face insurance requirements from third parties. Such parties vary industry to industry, but can be broken down into several basic categories:
Topics: insurance management software, insurance tracking, liability certificate, certificate of liability insurance, insurance certificates, insurance certificate tracking, insurance requirements, liability insurance, insurance limits
Successful insurance certificate management starts with solid contract insurance requirements. Review each of these eight contract insurance requirement essentials against your current insurance requirements and make changes as necessary to better ensure the effectiveness of your future risk transfer efforts:
1. Your requirements must be written
Topics: insurance management software, insurance tracking, liability certificate, certificate of liability insurance, insurance certificates, insurance certificate tracking, insurance requirements, Enterprise Risk Management
Many certificate holders want 30 or more days notice of cancellation in the event of cancellation of the coverage listed on a certificate. Such notice is entirely understandable. Every insurance certificate is only a record of the insurance purchased by the named insured when the coverage was bound (as of the effective date). It is entirely possible that a certificate holder may request, receive and accept a valid insurance certificate only to find out later that the coverage had been subsequently cancelled or the insurance limits had been eroded or exhausted by a claim.
Certificate holders that want notice of cancellation generally specify such notice in their insurance requirements. Traditionally, most have relied on the cancellation clause on the ACORD 25. Many have also requested amendments to the standard cancellation clause despite the fact that the old ACORD 25 certificate of liability insurance clearly stated that it was a matter of information only and did not endorse, amend, or altered the terms of the insurance policies on the certificate.
Prior to the ACORD 25 2009, the ACORD 25 cancellation language was confusing:
Insurance certificates are not insurance policies. Every insurance certificate is brief summary of the insurance policies listed for the reference convenience of the certificate holder. Each certificate of insurance generally includes the coverage type, the policy number, the policy effective date, the policy expiration date, the policy limits and the insurance company providing the coverage. Each certificate also states the name of the insured and the certificate holder.
Frequently, we see contract insurance requirements that specify lengthy custom language to be inserted in the desciption field. This language can be a problem for everyone.
Every year millions of insurance certificates are issued in the United States. Certificates of insurance are documents issued to third parties known collectively as certificate requestors/holders. Insurance certificates can be issued at any time during the policy period, but they are most common around the time of renewal of the coverage listed on the certificate. Each certificate of insurance provides select information about the insurance policies purchased by an insured. Such information generally includes the type of insurance, the policy number, the period of coverage, the policy limits, and the insurance company providing the coverage. Typically, there is room only for one policy per coverage type including general liability, automobile liability, umbrella or excess liability and workers’ compensation.
A Certificate of Insurance is NOT an insurance policy. Insurance certificates do not provide coverage. Insurance certificates also do not endorse,
Insurance certificates are essential for businesses and others working together. Insurance certificates are an essential step in proving the financial responsibility of the contracting party to their client. Insurance certificates should comply with the insurance requirements agreed to between the parties, illustrating the types of coverage, satisfactory limits of insurance, the period of coverage and the insurance carriers providing the coverage. The insurance certificate will provide some comfort that the contracting party has the specified insurance coverage and that it is current.
If you are considering doing business with any company,
Risk professionals in nearly every industry struggle with the limitations of insurance certificates. Nearly every insurance certificate is "a matter of information only" as is clearly stated on each. ACORD certificate of insurance forms contain specific language that states, "This certificate is issued as a matter of information only and confers no right upon the certificate holder. This certificate does not amend, extend or alter the coverage afforded by the policies below."
If an insurance certificate is a matter of information only,
Even the best insurance certificate tracking software will be of no use to you if you do not use it wisely. Insurance certificates and their companion additional insured and other endorsements are essential tools to ensuring your risk transfer expectations. Points are not gained by having long obtuse legal jargon. Real success is maximizing your vendor insurance certificate compliance results with the least hassle to you and your vendors so both of you can concentrate the business relationship that warranted the insurance certificate in the first place.
Here are five steps you should take now to facilitate and improve communications and which will help you achieve the results you are looking for:
Even though insurance certificate troubles are responsible for more than 25% of all insurance professional errors & omissions claims and this is not likely to go down. True or not, there are reasons for this. In most cases insurance certificates are still being prepared by the most junior and least experienced people in an insurance agency. They are not as familiar with insurance jargon, their own agency resources, or the insured's coverage and coverage limitations. They are also the most likely to be influenced by threats and intimidation by the client, the certificate holder and others.
Insureds can also be responsible as they may change insurance providers occasionally.
CertainCert is a company dedicated to helping companies of all sizes maximize their comfort in risk transfer. Using the CertainCert software, businesses of all types, lenders, municipalities and others can request, track, review and manage hundreds of different risk profiles and thousands of insurance certificates year in and year out. CertainCert is inexpensive and easy to use. Users large and small have lauded CertainCert and the customization possibilities. Regrettably, contract discipline, strong insurance requirements and comprehensive insurance certificate management are essential but still only a handful of tools available to those charged with risk management for their organizations. Larger organizations and their professional risk managers understand this and look at risk for the entire enterprise. This is called ERM or Enterprise Risk Management.
The CertainCert team encourage you to find out more about this event at the RIMS website or by clicking on the link below.
Welcome to the new and improved website for CertainCert Software. We are very excited to launch this entirely new and dynamic portal to provide you with more information about insurance certificate tracking, insurance certificate management and CertainCert™. We intend to initiate a provocative and lively discussion about insurance certificate tracking and insurance certificate management and encourage you to subscribe to our RSS feed to keep abreast of the topics we are covering and to weigh in with your own experience, insight and suggestions when you feel appropriate.
CertainCert Software has been around for more than a decade.
Certificates of liability insurance, workers’ compensation insurance, automobile insurance and their necessary attachments are very important to your firm. CertainCert™ is a very easy, inexpensive software tool to help all types of business owners, lenders, municipalities and insurance professionals quickly perform a comprehensive review of incoming insurance certificates. It is easy to use and can be customized to your specific insurance certificate tracking needs including any number of risk profiles and any number of insurance certificates and attachments.
CertainCert™ is also used by many clients to manage their significant outbound insurance certificates. Like the incoming insurance certificate features, the outbound features of CertainCert™ are also easy to use and can be customized as your needs dictate and your coverage/insurance carriers allow.
We will work with your team to ensure that you develop insurance requirements meaningful for your business and reasonable in your market then help you customize the CertainCert™ to automate your insurance certificate validation and follow up. No liability certificate, additional insured endorsement or workers’ compensation waiver of subrogation will slip through the cracks again neglected by time, training or systems pressures. Working with your insurance agent or broker, we will be sure to dove tail CertainCert™ with the insurance agent software familiar to you now. If you are not using any specific insurance agency software, CertainCert™ can provide the solid foundation you need to get started.