Streetsmart insurance Blog
Certificate of Insurance is an essential piece of agreement that needs to be availed by a contractor especially if he works on the property of another person. A contractor may have the possibility to be hurt while performing his duty or damage the property of his client. Companies that employ contractors also want to be sure that they will not be held responsible for damages, injuries or work that don’t meet their standard. Based on the above reasons, it’s crucial for both parties to have a certificate of insurance.
Certificate of Insurance is vital to both parties.
If a company hires a subcontractor who accidentally destroys property involving a large sum of money, the company can be held responsible for the damages. Even if the agreement in the contract stipulates that insurance coverage is compulsory, the company could still be questioned in court if there is no coverage in the deal. That is the reason why a company wants to be sure that the contractor has a certificate of insurance.
Who should request Certificate of Insurance?
As a representative of the company, if you hire subcontractors, it is essential that you should request a certificate of insurance from each subcontractor. Even if you trust the subcontractors – that you have worked in the past and knew them to have coverage during that time – you should still request a certificate of insurance every time you hire the subcontractors for a new job. By doing so, you can avoid a scenario where you inadvertently take on the risks that come with the work your subcontractors perform.
What’s to check first on a Certificate of Insurance Form?
Certificates are not always valid for some reasons. There are contractors that present false information or the insurance has already lapsed after obtaining the license of insurance. The false information in the certificate that some contractors intentionally falsified needs to compare to an authentic one by requesting business insurance certificate directly from the insurance company that issued the document instead of obtaining it from your contractor.
As an essential piece of agreement for both company and contractor, Certificate of Insurance can help settle any dispute that may arise due to damage of a property resulting from an accident.
At StreetSmart Insurance, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (732) 462-8343. Get your free quote today by CLICKING HERE.