What does a certificate of insurance NOT provide?

A certificate of insurance primarily serves as a document that proves the existence of an insurance policy. It typically includes essential information such as the name of the insured party, the types of coverage provided, and the duration of coverage.

The certificate indicates that the insured has coverage in place, thus providing proof of insurance. It also contains details about the insured party, ensuring that the party requesting the certificate understands who is covered. Additionally, it identifies the insurer, informing relevant parties about which insurance company is backing the coverage.

What a certificate of insurance does not do is guarantee payment for claims. While it may affirm that a policy is active, it does not guarantee that all claims will be paid. Payment of claims depends on many factors including the specific terms of the policy, coverage limits, and the context of each claim. This distinction is important because it clarifies that while the certificate serves as evidence of insurance, it does not provide any assurance that the insurer will cover losses or damages if a claim is made.