What should an agency check before sending a certificate of insurance?
By the Rayon research desk · Last reviewed
Four things: that the certificate belongs to your agency and a policy you hold, that the finished document reads back the same as the policy record, that it does not contradict itself, and that every statement of coverage points to the endorsement that grants it. A certificate that fails any one should not be sent.
What are the four checks?
| Check | The question | What it catches |
|---|---|---|
| Is it ours? | Does the producer block show this agency, and is the policy one we hold? | Certificates drawn from the wrong account or a template left over from another agency |
| Does it read back? | Open the finished PDF. Do the policy number, dates and limits match the policy record? | Stale dates, transposed numbers, last year’s limits |
| Does it contradict itself? | Do the ticked boxes agree with the description of operations? | An additional insured box ticked beside “certificate holder only” wording |
| Is every claim sourced? | For each coverage statement, which endorsement grants it? | Additional insured status or a waiver of subrogation shown with no endorsement on file |
Why rules and not judgement?
Each check has a yes-or-no answer that can be read from the document and the policy file. That makes the result the same whoever runs it, and it means a failed certificate comes with a reason a person can act on.
It also sorts requests correctly. A certificate that fails the fourth check is not a certificate problem. It is an endorsement request that was filed as a certificate.
How should an agency count errors?
- Blocked before send: drafts stopped by one of the checks.
- Escaped defects: certificates that were sent and later found to misstate coverage.
- Reissues: certificates sent again with a changed field.
- Same-day rate: requests closed on the day they arrived.
Where does this fit in a servicing process?
After drafting and before a person approves the send. Automation can produce a certificate in seconds; the checks are what stand between a fast certificate and a wrong one. New holders, new wording and anything that needs an endorsement should always go to a licensed person.
Sources
- ACORD 25, Certificate of Liability Insurance (the notice printed at the top of the form)
- ISO CG 20 10 04 13, Additional Insured: Owners, Lessees or Contractors, Scheduled Person or Organization
- ISO CG 20 37 04 13, Additional Insured: Owners, Lessees or Contractors, Completed Operations
- ISO CG 24 04 05 09, Waiver of Transfer of Rights of Recovery Against Others to Us
General information, not legal advice or an interpretation of your policy. Policy forms and endorsements control. Form numbers are © Insurance Services Office, Inc. and are cited for reference.