What is the primary purpose of a "certificate of insurance"?

The primary purpose of a "certificate of insurance" is to provide proof of insurance coverage to third parties. This document serves as a confirmation that an individual or business holds a specific insurance policy, outlining important details such as the type of coverage, policy limits, and effective dates. It is commonly required in various business transactions, such as when a contractor needs to show proof of coverage to a client or when a landlord requests insurance details from a tenant. The certificate acts as an assurance to third parties that adequate insurance protection is in place, thereby minimizing their risk in potential liability situations.

While information about an agent's credentials, past claims, and policy renewals may be important in other contexts, they do not encapsulate the main function of the certificate of insurance, which is primarily to provide verified evidence of insurance coverage to external parties.