Insurance & LiensQuestion 1550 of 1605
The primary function of a 'certificate of insurance' in the contracting process is to allow one party to:
a.Become the policyholder
b.Cancel the other party's coverage
c.Verify, before work begins, that the other party carries the required types and limits of insurance
d.Waive its own coverage requirement
Explanation
A certificate of insurance is used to verify at the outset that a contracting party carries the required insurance types and limits. It is a snapshot for verification only and does not itself provide, modify, or guarantee coverage.
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Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)