What is proof of insurance?
To begin with, proof of your insurance comes in many forms. No matter the item you hold, certain parties may request one of these forms to know that you are covered. Essentially, your insurance coverage can be presented in 2 ways. As a result, parties have a choice when it comes to how they want proof of insurance presented.
A certificate of insurance – this includes details like policy type, number and expiry date. On top of that it reports the liability and coverage of the given asset. Additionally, it allows brokers to identify the party the certificate should be made out to.
Policy declaration page – this is also accepted by certain parties and includes all of the same details as the certificate of insurance. However, this is not something that needs to be requested. Under these circumstances, it is typically given in your policy package.
Why proof of insurance is important?
Thus, you are a campground owner who recently hired a company to pump your sewage out. Unfortunately, the worker is new and damages your tank. As a result, the sewer backs up into your camper’s trailers. In this case, lets say that you did not request a certificate of insurance. Additionally, it also turns out that the company did not have business insurance. Because of this you would personally have to replace the tank. Not only that but you would be responsible for paying for any damage to customers trailers. So, why not ensure that if anything went wrong you’re covered?
Next, trailer owners should hold proper trailer insurance. Along with this, they should be prepared to provide proof of it at any given time. Initially this guarantees that your park owner is covered for anything you damage. It also ensures that in a case where damage is done to your property, your insurance company can carry the burden, not you.
Picture this, you have recently parked your trailer in a local family campground. In this case, a visitor to the park accidently backs into your trailer. While going to address the damage with you, they slip and fall on your deck. As a result, this not only ends up in damages to your trailer but also a lawsuit for bodily injury. Overall, a lawsuit from this could mean large legal bills. Therefore, if you had insurance, financial burdens resulting from the accident fall onto your insurance company.