In a business context, what does evidence of insurance typically refer to?

Evidence of insurance typically refers to a Certificate of Insurance. This document serves as proof that an individual or business holds an insurance policy in effect as of a given date. It summarizes the coverage types, policy limits, and potentially named insureds, providing third parties with assurance that the policyholder has valid insurance coverage.

While a written policy document contains detailed terms and conditions of coverage, it is often too extensive for practical verification in a business context. A verbal confirmation from an insurance agent, although it may convey current coverage status, lacks the formality and documentation needed for official verification. A signed insurance contract is comprehensive but is generally not what one offers as immediate evidence of coverage; instead, it may serve as the foundation for policy issuance but does not function as proof in transactions or contracts. The Certificate of Insurance strikes the right balance between brevity and comprehensiveness, making it the most appropriate form of evidence in such contexts.