Description

Certificates of Insurance (COIs) and Evidences of Commercial Property Insurance (ECPIs) are intended to be nothing more than proof that certain types of insurance coverages exist. In theoretical terms, COIs and ECPIs do nothing to alter or even effectuate coverage but neither lawyers nor risk managers seem to believe or accept this reality. Agents face pressure from these third-party holders and their clients to possibly commit fraud simply to allow the holder to check a box and the client to get paid. Third party certificate holders want to force wording on certificates that may or may not be supported by the policy language. Obviously, the easy way is to insert information that isn't true simply to avoid the fight and the pressure & just to make the demand go away. This is where errors and omissions (E&O) claims are born. Never, never put information on either a COI or ECPI that is not and cannot be supported by policy language. Because these documents are nothing more than single- page evidence that a policy exists, no information contained within them should be forced by an outside party. Never tire of doing what is right. The problems that appear to be caused by COI and ECPI requests are functionally the result of flaws and gaps in the insurance program placed for the insured. In reality, what the COI and ECPI holder want is for their contractor or sub-contractor to have specific insurance coverages evidenced by these documents. If the coverages can be placed, no problem; if the coverages cannot be placed DO NOT say they exist on the COI or ECPI. But even though some COI and ECPI issues can be "fixed" with changes to the insurance program, there are some wording requests that can NEVER be honored. This session focuses on both sides; what can be fixed, what may not be fixable, and what should NEVER be stated on a COI or ECPI. Buckle up! This is a fun ride. Basic Course Information Learning Objectives •What is a Certificate of Insurance? •COI Information You Must Consider •How Does a COI Respond to Contractual Risk Transfer? •Listing Certificate Holders •"BAD" Things to Do •Addendum Requests •Common COI Questions •What is an Evidence of Commercial Property Insurance •Who Should be Involved in Issuing a COI and/or ECPI? Major Subjects •Review the importance of certificates of insurance •Understand how COIs tie into contractual risk transfer •Evaluate Evidence of Commercial Property Insurance importance •Discuss how wrongly issued COIs can lead to errors & omissions claims