What does a 'certificate of insurance' provide?

A 'certificate of insurance' serves as a confirmation that an insurance policy has been issued, detailing that a specific level of coverage is in effect for a defined period. This certificate summarises the essential elements of the policy, including the type of coverage, effective dates, and the parties involved. It is primarily utilized to provide proof of insurance to third parties, such as clients or business partners, ensuring that the policyholder has the necessary insurance protection in place.

While providing evidence of a legal agreement, details regarding policy exclusions, and summaries of active claims are important aspects of insurance, they are not the primary purpose of a certificate of insurance. The certificate does not delve into the specifics of policy exclusions or limitations, nor does it summarize claims, as its main focus is on the existence and validity of the insurance coverage itself. Therefore, the correct answer highlights the certificate's role in verifying that an insurance policy is active and provides coverage as promised.