In commercial insurance the Certificate of Insurance should be first requirement on any business’ checklist when reviewing a potential commercial tenant, subcontractor, shipper, broker or vendor. The Certificate is of great importance as it summarizes the limitations of coverage each prospective contractor has actively in effect. For Trucking, coverage can include: Worker’s Compensation, Commercial Auto Liability, Motor Truck Cargo, and General Liability and are generally presented on an annual basis unless a prorated policy was issued mid-term.
A current certificate of insurance does not transfer risk, but instead provides evidence of existing insurance. Not requesting them can result in circumstances that could have otherwise been avoided, such as potential liability in the event the contractor has only verbally confirmed coverage. Make sure to review the terms of the Certificate, to verify the coverage limits are appropriate under the circumstances of the pending contract. Resources are available online to review the standing of Motor Carriers and Insurance filings. Contracts extending more than a 30 day period should be reviewed with one of these resources, to confirm the status of Insurance, or a new Certificate of Insurance should be requested.
The Certificate can also be issued to reflect a Physical Damage limit. Most lending institutions require a Certificate of Insurance for financed property, commercial vehicles, or contractors’ equipment. In these instances the value of the “property” would be described with the limitation of coverage payable to the lender in the event that the insured incurred claim a total loss. The Lender would also be listed as “Loss Payee” and “Additional Insured”. Again, the Certificate does not transfer risk, but it does provide evidence of existing insurance, and prevents the Lender from potentially charging ridiculous fees for limited insurance coverage within your loan.
Consult your Trucking Agent for more information regarding the Certificate of Insurance. Our agency offers online certificates for our customers . Policy information is available online 24 hours a day with a Login and Password. We also accept requests for Certificates from contract sources in our “Loading Zone“ on our homepage. Contact us today for more information!