There is often great confusion regarding a Certificate of Insurance (COI) around what it actually does and what people assume it does. A COI is NOT an insurance contract. A COI provides no rights or guarantee of coverage to the COI holder. A COI provides zero certainty that a claim will get paid. A COI is merely a snapshot at that moment of the insurance policies in force at that time for that insured - nothing else. The wording on the COI itself states:
"THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES
BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED
REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER."
There are many factors that can affect coverage and a claim being denied or accepted. Do not rely upon a COI as a guarantee that a claim will get paid. A COI allows the COI holder to bypass the insured and turn the claim directly into a carrier should a loss occur.
If you have a COI and you have questions or would like a no obligation review, you can reach us at: Quotes@BandCIns.com.