What is an insurance certificate

Posted on Monday, April 6, 2015
What is an insurance certificate
Throughout this literature, we will attempt to explain, in very simple language, what an insurance certificate is, why the insured need them, who issues them the most, and also many different ways by which using modern technology can help to assist in the insurance certificate process. Unfortunately, for as popular as insurance is via today's media, like commercials and social campaigns, little emphasis is placed on insurance certificates. The fact of the matter is that they're rather boring as a topic. Flo can't make a funny commercial about them, and nobody wants to see a lizard holding up a certificate. Nevertheless, insurance certificates are incredibly important to an insured individual's actual policy, so we will provide a detailed rundown of said certificates.

To put it simply, an insurance certificate is the documented, paper version of the insured's policy that he or she received from their insurance company or broker as verification of the insurance, usually created by an Insurance Agency Management System. In many ways, you can liken an insurance certificate to a driver's license. You have passed the written and manual driving test, but you need your actual card to prove it. With an insurance certificate, you have purchased an insurance package, but by having the certificate, which provides the date of your insurance and other general data, you have easily accessible proof of your insurance.

While a lot of things within the realm of insurance are inherently complicated, an insurance certificate is actually a fairly straightforward thing, and it's easy to understand what they are.

Why Do People Need to See an Insurance Certificate?

The next area of interest that may concern you is why you, as an insured individual, may need an actual insurance certificate. After all, unlike a driver's license, no one is demanding of you to show proof of your insurance. Right? Well, not exactly. Let's look at situations where in potential large losses, and liability issues are of a concern. Let's say that a company wants to reach out to a temp agency in order to hire a delivery driver for a few weeks. Now, the company needs this driver in a hurry, and so there's really no time available to dig through records and to find proof that the driver—and the agency from where comes the driver—is insured. So, to expedite this process, the temp driver will produce an insurance certificate and clear up any issues dealing with liability. Even though it's a temp driver, the company for which he or she is temporarily driving still must remain insured. By ensuring that the temp driver is insured and can prove so, the company hiring her or him will remain covered through any incurred damages or liability issues.

You can extrapolate this sort of scenario to many others to see why having an insurance certificate from an Insurance Agency Management System may come in handy. If you have been involved in a fender-bender, for example, and want to exchange insurance details, providing the name and number of your insurance company may not be enough for the other party; whereas producing your certificate gives all the necessarily information needed to get the ball rolling. Proving you're actually insured will come in handy in a wide variety of situations. Hopefully you never have to encounter most of them, but should you, then it's a great idea to have that certificate handy.

Which Insurance Agents Issue the Most Certificates?

There are so many types of insurance available that it would literally take an entire article by itself just to cover them all. You have home, auto, traveler's, medical/health, life, and even pet insurance, just to name a few types. And while all types of insurance can technically offer a certificate, there are some types that offer certificates more. The types of insurance agents offering the most certificates to the insured are usually those offering liability insurance.

As part of a general insurance system, liability insurance is basically a way to protect the insured party from the many risks posed by liabilities: Auto accidents, work-related issues, health issues, etc. Liability insurance helps particularly in the realm of lawsuits and civil issues which would require an individual to go out of pocket to pay a hefty price for things which they are found liable. Having insurance means that any liability an individual is guilty of will be picked up by the insurance company.

In issues where liability is at question, having proof of one's insurance is a must, thus having a certificate printed via an Insurance Agency Management System really pays off. This is especially true in cases of work-related instances and when participating in the buying or selling of goods like real estate, etc. Therefore, the insurance agents dishing out the most certificates are primarily located within the fields dealing with the most liability coverage.
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