A COI (certificate of insurance, is a document that has all the necessary details of an insurance policy that is easy for people to read and understand. COIs come in handy; not only do they display information in a concise manner, but they also are convenient to have available and can be useful in lieu of third-party liability and risk.
No matter what the project entails, there is always the chance of something to go wrong in the project that involves companies in healthcare and other industries. Many types of third parties need to be managed in a project, such as credentialing companies, investors, contractors, and even customers, visitors, or just passers-by.
When it comes to projects being started and finished, you will need an insurance policy that can cover it. Full-on insurance policies, however, come with various paperwork that outline all the rules, terms, and other details. Trying to read up on one policy alone can take a long time to do. Certificates of insurance are crucial to help summarize policy terms, so they are essential to collect them from all parties that have insurance. It’s better for businesses to keep organizable forms rather than to manage countless pieces of paper for each policy.
Why Is A COI Great to Have?
A COI, as stated previously, is a concise description of an insurance policy that is convenient and easy for people to read. What the COI contains includes who the policy covers, how long the policy lasts, and what are the terms and restrictions of the policy.
A COI is beneficial in four ways. Firstly, they can prove your insurance status. The COI serves as a proof of insurance easily, as it states that you are a current insurance holder as well as how much longer you hold that insurance.
Having a COI gives you quick and convenient access to information about your insurance. It takes far less time for people to find what they are looking for in a COI than a full policy. This can potentially save you lots of time and effort each year figuring out your policy.
A COI also reduces liability. In the event that something goes wrong in your hospital, you can be sure to have the terms of your policy laid out for others to read. A COI can easily explain what would happen if something were to happen and what would be done about it. Who is liable? Who would be the party to pay for it? Your COI could be able to answer that.
Lastly, a COI can serve as protection when you need to outsource a job. Contingent work leads to having to anticipate insurance hazards. Thus, you should check each vendor’s insurance plan, as this could possibly save you from costly litigation should something were to go wrong that would otherwise take a bite out of your bank.
What Is the Difference Between COI and Insurance?
Typically, there are five types of insurance policies that get converted into COIs: General, auto, employers, umbrella, and workers’ compensation. Both insurance policies and COIs can coexist
With one another, but a COI doesn’t outright replace an insurance policy. It only certifies itself as a concise, user-friendly version of that policy. So rather than amend the entire policy you might have, you can instead use the COI to better understand your insurance’s terms.