Guest Post by Michael J. Holland, CIC, CRM, Senior Vice-President at Elite Group

September 7, 2010

Most non-profits have received requests for insurance certificates. These requests typically come from banks, mortgage companies, landlords, government funders, special event venues and other parties with whom an organization has a contractual relationship. And while the requests are typically received as straightforward, innocuous documentation requests, many times they are much more than this and should be reviewed carefully by your insurance broker. Often, the broker will respond with a series of questions about the reason and specifics about the interest of the requesting party.

The importance of appropriate analysis of insurance certificates cannot be overstated. Some requests are for a certificate with no other obligation on the part of the issuer, essentially a request only for “Proof of Insurance”. This conveys no coverage for the recipient and is only a source of information. However, most certificate requests include the recognition of the requestor as a “Loss Payee” and/or “Additional Insured”. These provisions actually extend your insurance coverage to the recipient.

Michael J. Holland, CIC, CRM, is Senior Vice President at Elite Group (www.elitegrp.com).