The CMS Blog: Insurance Certificates & More

Considerations for Insurance Certificate Issuance

Many large companies have secured the right to issue their own insurance certificates. The protocols for issuing certificates will vary between carriers and lines of coverage. Most casualty coverages can be issued on the ACORD 25-S form, while property certificates may be manuscripted.

Most brokers and carriers will require that the insured indemnify them for any claims resulting from an error in issuing the certificate. This indemnification can be limited, however, to a specified time frame.

In order to issue the insurance certificates, the insured will need access to a software package such as Certs Made Simple (CMS).  Insureds will also need to send copies of certificates to insurers on a periodic basis. These submissions may be quarterly, annually, or more frequently if needed.

In issuing certificates, an insured must always use caution when providing evidence of special provisions or endorsements. When showing additional insureds or loss payees, be sure to limit this status to the relevant event, location, property, etc. Also, the policy will need to be reviewed for the structure to cover additional insureds. Consultation with an expert, such as those at CMS, is suggested.

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