Certificate of insurance
What it means
A certificate of insurance confirms that cover has been arranged. In Australian commercial practice the term is often used interchangeably with certificate of currency, and many insurers issue a single document under either name.
Where the two are distinguished, a certificate of insurance tends to be issued at inception as confirmation that a policy has been placed, while a certificate of currency is issued on demand to confirm that the policy is in force right now. Statutory schemes also issue certificates of their own, which are a different thing again: those evidence cover under a scheme, not under a market policy.
Also called: certificate of insurance, COI, insurance certificate
Where you meet it
- Contract compliance schedules, which frequently ask for a "certificate of insurance" and accept a certificate of currency.
- Statutory building schemes, which issue a certificate to the homeowner as the record that scheme cover applies to the work.
- Finance and leasing conditions, where a lender requires evidence that an asset it has an interest in is insured.
Worked example
A contract requires the contractor to provide "a certificate of insurance for public and products liability prior to commencement". The contractor’s broker issues a document headed "Certificate of Currency".
In practice this satisfies the requirement, because the document contains what the clause is actually asking for: the insured, the cover type, the period and the limit. The safer move is to ask the party requesting it what they need to see on the document instead of arguing about its title.
What goes wrong with it
- The document title is not what matters. What matters is whether the insured entity, the cover type, the period and the limit are all on it and all correct.
- A statutory scheme certificate does not evidence a market policy, and a market policy certificate does not evidence scheme cover. A job can require both.
- Some contracts ask for the policy schedule rather than a certificate. A schedule carries more detail, including endorsements, so read the clause before sending the shorter document.
Covers this clause appears in
- Public liability insurance — Cover for legal liability to third parties for personal injury or property damage arising from business activities.
Related clauses
Guides that use this
Sources
On any specific policy, the wording and the schedule govern — they are the primary source for what a clause means there. The references below are general guidance to check against, cited at the publisher level.
- Moneysmart (ASIC) — General guidance from the regulator’s consumer site on insurance documents.