Understanding Certificates of Insurance
A Certificate of Insurance (COI) is a document that provides proof of an organization's insurance coverage. For student groups and schools within a university, it's essential to understand the key components to ensure adequate protection. Managing and tracking certificates of insurance within your department or association goes a long to transfer risk to the appropriate party in the event something goes wrong.
Here are the important areas you would find on a Certificate of Insurance and why they matter:
1. Policyholder Information:
What it is: This section lists the name and address of the insured person or organization (e.g., the student group or university).
Why it's important: It verifies that the certificate belongs to the correct entity (the party we’re asking for proof of coverage from), ensuring the coverage is in place for the right people.
2. Certificate Holder:
What it is: This identifies the person or organization requesting the COI (e.g., Laurentian University of Sudbury, Students’ General Association, or a premises where you may be holding an event or doing research work).
Why it's important: It confirms who is receiving the proof of insurance and may grant them certain rights, such as being notified of a policy cancellation.
3. Insurance Company/Broker Information:
What it is: The name and contact information of the insurance provider or broker who issued the certificate. (this section should list clear names and contact details along with a broker signature)
Why it's important: This allows for verification of the policy's validity. If there are any questions about the coverage, the certificate holder can contact the issuer directly.
4. Policy Number and Dates:
What it is: The unique number assigned to the insurance policy and the effective and expiration dates of the coverage.
Why it's important: This confirms the policy is active and provides the time frame during which the insurance is valid. It's crucial to ensure coverage is in effect for the duration of any event or agreement.
5. Coverage and Limits:
What it is: This outlines the types of coverage included in the policy (e.g., Commercial General Liability, Professional Liability) and the maximum amount the insurer will pay for a covered loss (the "limit").
Why it's important: This is a critical section for risk assessment. The limits of liability should be sufficient to cover potential risks associated with the activity. For example, a student group hosting a public event will need higher liability coverage than one holding a small meeting.
6. Additional Insured:
What it is: This section lists any individuals or organizations, in addition to the primary policyholder, who are protected by the policy.
Why it's important: The university often requires to be listed as an "Additional Insured" on a student group's policy. This provides the university with direct coverage under the student group's policy for any claims related to the group's activities. It protects the university from having to rely solely on its own insurance in case of an incident.
7. Cancellation Clause:
What it is: This states the insurer's policy regarding notifying the certificate holder if the insurance is canceled before its expiration date.
Why it's important: It provides a notice period (e.g., 30 days) to the certificate holder, allowing them to take action to ensure continued coverage and compliance with any contractual requirements.