Certificate Requests

A Certificate of Insurance is a short summary document provided by your broker showing your in-force policies, which you can then share with others that you do business with. It is a snapshot of what is included on your policy on any given day. It does NOT change the coverage in your policy and your policy contract always governs any claims that might arise.

Litigation surrounding Certificates has increased rapidly in the last few years. Carriers have in turn reduced their exposure by changing the language in their policies, so that additional coverages that you may need (such as additional insured or waiver of subrogation) now only apply in specific circumstances. As your broker, our goal is for all parties involved to have the coverage that they thought they had. Asking you for this information helps us to determine whether your situation meets the criteria specified by the carrier in your policy. If so, great! If not, then we will work with you to add the coverage that you need in order to satisfy the Request. The carrier may have additional questions as well in that event.

The creator of the standard ACORD 25 liability certificate form, ISO, states in their Forms Instruction Guide that this section should be used to state "information necessary to identify the operations, locations and vehicles for which the certificate was issued." It was never intended for coverage details such as additional insured or waiver of subrogation. The columns in the policy section above the description are meant to indicate whether the policy offers those coverages and that is where we place that information.

We are especially wary of putting any language in the descriptions of operations box after the Washington Supreme Court decision (citation below) determining that details entered in the descriptions of operations box of the Certificate by the broker were binding on the insurance carrier, even though the coverage stated by the broker did not exist in the policy. We are independent brokers and not authorized by the carriers that we work with to unilaterally amend their policies. 

T-Mobile USA, Inc. v. Selective Ins. Co. of Am., 194 Wn.2d 413, 450 P.3d 150, 2019 Wash. LEXIS 659, 194 Wn.2d 413, 450 P.3d 150, 2019 Wash. LEXIS 659 

Therefore, it is our brokerage policy to never enter any information in the descriptions of operations box on the Certificate. We are, however, always happy to send a copy of the policy to the Certificate Holder so that they can glean all of the policy details they might need. This better protects our clients, our carriers, and our brokerage from litigation, and gives the Certificate Holder a complete picture of the coverage on the policy.

Your Certificate is just a very brief summary of what is included in your policy on any given day. The policy itself is many pages long for a reason - there are many terms and conditions! At the very least, we always recommend attaching policy forms and endorsements relevant to the coverages requested by your Certificate Holder, so that they can see for themselves what terms apply to those coverages. This gives them the opportunity to evaluate the coverage and let us know if anything further is needed. We are always happy to send copies of forms, endorsements, or even the entire policy, so that everyone involved in the transaction knows what is covered and when. This prevents any surprises (and litigation) in the event of a claim, which better protects you and the Certificate Holder.

We highly recommend that you send us the insurance requirements for any contract that you plan on signing BEFORE you sign it! Your contract specifies the insurance needed for the transaction and is often written by an attorney or other party who is not fully aware of the insurance coverages and products available in the market at that time. We often receive requests with boilerplate language that does not apply correctly to your business or situation; or, that requires coverage that is not available or is very expensive for your particular business. If you have already signed your contract, you may have unknowingly locked yourself into a very expensive insurance provision! Worse even, it may not be possible for your insurance to comply, and you will be in breach of contract before you even start the project. If we can help to review your policy and the insurance marketplace before you sign the contract, you will have the opportunity to negotiate with the other party on the insurance terms if needed.

We are your insurance broker and it is our job to assist you in obtaining the insurance that you need to satisfy your contract. We are, however, legally not permitted to practice law. The Washington State Bar Association defines the practice of law as applying legal principles or judgments, which require the knowledge and skill of a person trained in the law, regarding your circumstances or objectives. This includes, among other things, giving advice to you regarding your legal rights, drafting your legal documents, and negotiating your legal rights. We will do everything that we can to assist you in understanding the insurance required for your contract without giving you legal advice or practicing law. There will be some situations that require you to speak with your attorney.

We will review your Certificate Request as soon as possible and always within 1 business day. We will then review the policy to determine whether it already meets the parameters requested. If so, then with our insured's permission, we can issue the Certificate immediately. If not, or if we need clarification, then we will reach out to our insured and the Certificate Holder for more information. If additional endorsements must be added to the policy, underwriting approval will be required. Once an underwriter has approved, it takes most carriers 7-10 days to issue endorsement documents. When we have the endorsements in hand, we can issue your Certificate. We will do everything that we can to expedite your Certificate and communicate with you throughout the process so that you know what to expect and when. Please submit your Certificate Request as early as possible to allow time needed for this process and always BEFORE you have started work!