In business, these certificates are useful as the evidence during the losses or damage. It contains all the information about the insurance. There are two versions of Liability Insurance certificates. The standardized one and the non standardized one.
The certificate of insurance will provide a lot of information which includes name of the insured, agent who is issuing the certificate, expiry dates, policy types, policy numbers, details of coverage, insurance limits. When the cancellation of the policy is done then in those cases it will notify the certificate holder, responsible persons for issuing the certificate.
These certificates are used for protecting the party by another party during the business transactions. The party which is protecting should provide evidence for the party which got protected and the protecting party should have the financial ability to satisfy the needs. The insurance takes care of protecting someone. These certificates are used for evidence and if loss occurs these insurances will safeguard us.
All the information will be summarized in a single paper, and thus they provide a valuable service. The policy certificates also contain the information regarding to the owner like premiums of the insurance, business volumes, rates.
Apart from the level of cover, the insurance cannot cover. Just the information will be held in the certificate, no rights are conferred on the certificate holder. The policies cannot be amended , extended, altered by the certificates. Unless the insurance policy is changed, the level of coverage will not be changed by the certificate alone.