Attorney Deborah Koplovitz, a shareholder at Anderson Kill, points to examples of boards letting their insurer take advantage of them. She encountered a situation in which residents were undertaking an alteration project, and the co-op board asked that the corporation be put on the contractor’s policy as an “additional insured.” The resident complied with the request, but the contractor added the corporation to the certificate of insurance – not to the policy. The managing agent then told the board that the corporation was covered.
Not so. “The insurance company is pulling a fast one,” Koplovitz asserts. “Basically, they're only too happy to add anyone onto a certificate of insurance, because at the top of that certificate, it says, ‘This is not proof of insurance.’ This is a meaningless document that doesn't cover you at all.” A certificate of insurance is an informational document, used to lay out the specifics of an insurance policy: the policy number, the amount, and who is actually covered.
To read the full article: Has Your Insurance Got You Covered?