What is a Certificate of Insurance primarily used for?

A Certificate of Insurance serves as a vital proof of coverage issued by an insurance company. This document provides essential details about an insurance policy, such as the type of coverage, effective dates, and the policy number. It is often requested by third parties to ensure that the insured party carries the adequate insurance necessary for a contractual agreement or business relationship.

For instance, a contractor may need to provide a Certificate of Insurance to a client before beginning work, demonstrating that they have liability insurance in place. This not only reassures the client but may also be a requirement in the contract. The certificate acts as verification, protecting both parties by ensuring that proper coverage is maintained.

The other options describe elements associated with insurance but do not encapsulate the primary function of a Certificate of Insurance. A list of companies offering insurance would not provide proof of coverage; a summary of policy exclusions focuses on what is not covered rather than the coverage itself; and terms and conditions outline the specifics of a policy, rather than serving as evidence of that policy.