When leasing a commercial real estate property, it’s important to ensure that the landlord and tenants are both properly covered by insurance. A certificate of insurance (COI) provides evidence that such coverage is in place for a specific period of time. It will typically include information about the insurer, policy number, dates of coverage and a list of covered risks. In this blog, we review some important information about COIs and provide you with a downloadable certificate of insurance sample.
A certificate of insurance sample may include a description of the property and its use, details about the parties involved in the agreement and an authorization for additional insureds to be listed on the policy. The COI should specify the dollar limits of coverage for each risk.
It is important to note that a COI does not guarantee payment. Rather, it serves as evidence that an insurance policy exists and covers certain risks, but still subject to the terms of the policy. For example, if there are exclusions in the policy or pre-existing damage was not disclosed, a claim may be denied even if a COI is presented.
Before signing any agreement, it is important to read the COI carefully and make sure that it meets all of your requirements. If there are any discrepancies, do not sign the agreement until they have been resolved. A sample certificate of insurance (COI) is available online for reference and further guidance when preparing a COI for commercial real estate transactions.
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It is also important to keep in mind that a COI is not a guarantee of payment. As such, it is essential to understand the terms and conditions of the policy before relying on it for protection. If there are any questions or concerns about coverage, contact your insurance provider directly for clarification.
In summary, certificates of insurance provide additional peace of mind when it comes to commercial real estate transactions. They serve as proof that adequate insurance coverage is in place, and they are required by most lenders before they will approve a loan. Understanding what information should be included on the COI and ensuring that all parties involved have signed off on its terms can help ensure a smooth transaction. With the right knowledge, you can make sure a certificate of insurance is up-to-date and accurate. A sample certificate of insurance can provide a great resource for both buyers and sellers to ensure the transaction is fully protected.
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