When you rent equipment or shoot on someone’s property, chances are you will be required to provide a Certificate of Insurance. The Certificate of Insurance is one of the most misunderstood and abused documents. It is not a binder, a rider, or even a policy. Rather, the certificate, is a document used to prove that you have insurance coverage; or more formally, it “certifies that the policies of insurance (indicated) have been issued to the insured named (on the certificate) for the policy number, dates of coverage, the limits of liability, and the
certificate holder.”
The certificate holder is a person or company wanting to confirm that certain insurance coverage is in force.
Certificate holders can be rental houses, property owners, municipalities, lessors, etc.
Some certificate holders may need more than proof of coverage and will request extensions to your policy. These entities will want to be assured that their financial interest in their property in your care, custody & control (e.g., vehicles, cameras, sound and lighting equipment etc.) is protected and that your policies will
participate in any damage settlement. In this case, they will require Loss Payee status, which may be shown on
the certificate.
Others may wish to be protected by your policy for suits arising out of your operations on their behalf or on
their property. They will request Additional Insured status, which may also be shown on the certificate.
The certificate may also indicate other conditions, such as the replacement cost settlement provision or
unattended vehicle exclusion, which are very common with rental houses.
Remember, the insurance company must grant these various requests for coverage extensions before they are
valid. Some extensions carry an additional charge, others do not – be sure to check with us prior to your
production.
Common mistakes with Certificates of Insurance include:
1) Improper use – trying to make a policy out of a certificate by adding extra or inappropriate wording.
2) Improper execution – lacking an authorized signature, showing inadequate limits, or not showing the
required coverage.
3) Improper holder designation – not showing the proper status, e.g., Loss Payee, for the certificate
holder
During a production, certificates fly around like snowflakes in a blizzard, as they are incredibly important to a shoot. Make the time to understand the requirements of your suppliers and communicate those needs to us to get the certificate RIGHT the first time.
You’ll save a lot of time and frustration while ensuring a smoother production.
PDF Version of Certificates of Insurance – The Life Blood of Industry