Certificate of Liability Insurance: What It Is & How to Get One (2024)

Depending on the nature of your business and your location, you might be required to carry liability insurance. General liability insurance covers your business for accidental property damage and bodily injuries caused to others. It also covers problems such as reputational harm, advertising injury and copyright infringement.

If your business is required to have liability insurance, you might be asked to provide a certificate of liability insurance. But even if you’re not required to have that coverage, a general liability certificate of insurance can help allay client concerns.

What Is a General Liability Certificate of Insurance?

A general liability certificate of insurance is a document that proves you have liability insurance. It includes basic information about your liability insurance policy.

Depending on your small business insurance company, a general liability certificate of insurance might be called something else. For example, some insurance companies call them ACORD 25 forms or simply “proof of insurance.”

Small businesses may want a general liability insurance certificate to:

• Prove to a client that you have enough insurance before taking on a job.
• Show a landlord you have liability coverage.
• Comply with requirements for professions that must have general liability insurance, such as real estate agents. A certificate can also show other coverage, such as workers compensation insurance and errors and omissions insurance.

What Does a Certificate of Liability Insurance Cover?

A certificate of liability insurance includes basic information about your general liability insurance policy, including:

• Coverage limits
• Types of coverage
• Deductibles
• Insured business owner(s)
• Business name
• Policy number
• Insurance company’s name
• Policy start and end date

How Do I Request a Certificate of Liability Insurance?

You can request a certificate of liability insurance if you have a general liability insurance policy, though you typically receive a certificate of liability insurance once your coverage begins. If you lose track of your certificate or need another copy, there are a two ways to get one:

• Online: Insurance companies may allow you to download a digital certificate of liability insurance through your online customer profile. You can send a physical copy or digital copy to the person requesting it.
• Contact your insurance company: If you don’t have access to a digital version of your certificate, you can contact your insurance company and request a duplicate. You might be able to request a hard copy in the mail or a digital version sent to your email.

Who Needs a General Liability Insurance Certificate?

Any business that wants to show it has the proper coverage can benefit from having a general liability insurance certificate.

Professions that typically buy general liability insurance coverage include:

• Artisan contractors
• Consultants
• IT contractors
• Janitorial services
• Landscaping services
• Marketing firms
• Real estate agents
• Small business owners

How Much Does a Certificate of Insurance Cost?

Certificates of insurance should not cost you a penny. If you have a general liability insurance policy in place, your insurance company should be able to send you certificates of insurance without an extra charge.

A general liability insurance certificate, which is free, is typically provided when you begin coverage.

Why Should I Add My Client to My General Liability Insurance Certificate?

Asking to be added to a general liability policy and certificate of insurance is a common request of clients.

Contact your insurance company and have the client’s name added to the liability insurance policy and to the certificate of insurance. It is a simple step and can go a long way in establishing that you have the needed liability insurance for your business.

What Other Types of Insurance Does a Certificate of Insurance Verify?

Professional liability insurance, also called errors and omissions insurance, is another insurance type for which you can get a certificate of insurance. Professional liability insurance comes to your rescue when someone says you made professional mistakes in your business services.

Workers compensation coverage can also be verified with a certificate of insurance. Workers comp provides benefits to employees who suffer an injury or illness due to their work. It’s required in most states, so you’ll want a certificate of insurance to show you have it.