C.O.I. AND A.I. WHAT IS WHAT? By Jack Williams
Our job as agents is to protect you!
AGENCY CORNER
As an agent, I’m often approached by clients requesting to issue documentation providing proof of coverage or extending coverage to third parties they do business with. Issuing certificates, either proof of coverage listing the third party as “certificate holder” or extending coverage through “additional insured” status is a core service that agencies provide daily, BUT do you understand what you’re signing up for when requesting that coverage be extended to a third party? Let’s dive into this topic a little bit with some basics that will hopefully broaden your insurance knowledge.
have a service performed for them should always at the very least request a C.O.I. to make sure that the party they’re doing business with is covered for the liability of the service being provided. This is a sound business practice that most companies follow. However, something to keep in mind is that “certificate holders” are NOT notified if the coverage either lapses or is canceled. For example, let’s say you hire a subcontract hauler for a three-month contract beginning October 1st. Well, on October 1st, the sub-hauler did have commercial auto coverage, but what happens if the hauler allows his coverage to lapse on November 1st? Odds are you won’t be notified by the sub-hauler as insurance documents and contracts are in the rearview mirror of the job at hand. Now, let’s say this sub-hauler gets into an auto accident and not only injures the other driver but totals out the other vehicle…now what?
CERTIFICATE OF COVERAGE (C.O.I.)
A certificate of insurance “C.O.I.” is proof of coverage, the official documentation issued by an agent which verifies to the certificate holder (the third party requesting proof of coverage) that “You” do in fact carry the limits requested by the certificate holder at the date of issuance. Business owners that contract with any third party whether to perform a service or
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FMIC FALL 2021
Jack Williams Agent, FMIC Insurance Company Photo Credit: FMIC Staff Photographer
