8 Tips for Handling Certificates of Insurance for Your Clients While Protecting Your Agency

Certificates of Insurance (COIs) play a critical role in verifying the existence and details of insurance coverage for clients, vendors, and third parties. As essential documents, their accurate preparation and issuance can help prevent costly misunderstandings and liability exposures. However, the process requires attention to detail – and oversights or missteps can lead to claims and administrative complications. To help agencies navigate these complexities, it is crucial to understand and implement best practices when issuing certificates of insurance. 

1. Verify that coverage is in force before issuing a certificate of insurance. The most common reason we see claims related to COIs is their issuance when coverage is not in force. Has coverage been cancelled? Was the renewal bound? Ensure you keep your agency management system up to date as many of these errors are a byproduct of inaccurate information in the agency management system. 
2. Do not issue a certificate of insurance listing an additional insured that has not yet been approved by the carrier. Even if the carrier will traditionally approve the additional insured without issue, it is best to wait until they provide formal approval before providing the COI. 
3. Check for any endorsements that modify coverage and be sure they are noted on the certificate of insurance. 
4. Do not add non-standard language to a COI without having it reviewed and approved by the carrier first. 
5. Never provide a blank, signed certificate of insurance to a client for them to fill out themselves. 
6. Do not just duplicate a prior-year COI. Review the current coverage to make sure that you provide current, accurate information. 
7. Include a formal, written process for handling certificates of insurance in your procedure manual.
8. Assign specific employees to handle COIs and have a two-person review process to confirm the information is accurate before the COIs are released. Audit employees regularly to ensure adherence to the procedures and accuracy in processing.

Help Safeguard Your Agency
By adhering to these best practices, agencies can help safeguard themselves against unnecessary risk while delivering reliable service to their clients. A thorough, standardized approach promotes trust and professionalism – and can help prevent costly errors and liabilities. Through diligent verification, clear procedures, and ongoing audits, agencies can be certain that every certificate of insurance issued stands as a true reflection of coverage – benefiting clients and the agency itself.