Insurance Certificates are provided by the insurance broker to verify that the contract insurance requirements will be met. Contracts usually require that the certificate state that the certificate holder (Client) be notified by a specified number of days prior to amending, expiration, or cancellation of the policy. Most insurance certificates are provided using a format developed by the Association for Cooperative Operations Research and Development (ACORD). The ACORD continuously reviews the changing regulatory requirements in all jurisdictions where ACORD forms are used, and revises forms as needed to keep them compliant. Prior to 2010, the ACORD form stated that the insurer would “endeavor” to provide the required notice. This language did not satisfy many Clients so the ACORD statement was revised to state that “notice will be delivered in accordance with the policy provisions”. The new language revision was not particularly helpful either since the Client did not have convenient access to the “policy provision”. The Consultant then has to review the policy provisions and provide them to the Client. Hopefully the policy provisions meet the contractual requirements. If they do not, the Consultant may seek agreement with the Client that the Consultant’s providing the notice will be acceptable to the Client.
Some Clients require that it be named as an additional insured on the policy. This is not normally available for Workers’ Comp and Professional Liability policies. When available, Insurance Certificates are normally provided without cost.