Certificate of Insurance
A certificate of insurance is a document issued by an insurance company to confirm that insurance cover is in place. It is mainly used in the Marine area of insurance.
Where a company takes out a group policy for all its employees the insurance company can also issue certificates of insurance to each individual member. This will act as proof that the member is in fact insured under the policy and it will also list the individual’s terms and the amount of cover in place.
When individuals take out short-term insurance, for example a car insurance policy, they are not issued with a certificate of insurance as they receive their own policy document and schedule as proof that they took out the specific insurance. It may become necessary for an individual to proof to a third party, such as a creditor, that he has insurance in place that is current and paid up to date. In such an instance the insured party can request an official letter from his/her insurance company to confirm the details. If you deal with an insurance broker you can also request him to issue you with a letter as proof of your insurance.