What is a 'certificate of insurance'?

A 'certificate of insurance' is indeed best described as evidence of insurance coverage, excluding the detailed policy documents. This document serves as a straightforward summary that confirms the existence of an insurance policy and outlines key details, such as the type of coverage provided, effective dates, and any endorsements attached. It is often used in various professional contexts to prove compliance with insurance requirements for contracts, leases, and other agreements.

The certificate does not delve into the intricacies of policy terms and conditions, which are typically found in the full policy documents. Instead, it acts as an accessible and concise reference for third parties who require reassurance that the insured party has the appropriate coverage. This functionality makes it an important tool in risk management and contract negotiations, highlighting the essential role that certificates of insurance play in facilitating business operations and partnerships.