Free sample letter requesting certificate of insurance from vendors [2023]

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Here you will find a sample letter requesting certificate of insurance from vendors

Before jumping to the sample I want you to understand the basics as far as vendor certificate of insurance (COI) is concerned.

Knowing what is a vendor certificate of insurance and how to request a certificate of insurance from a vendor is as important as seeing a sample letter requesting certificate of insurance from a vendor.

Generally, service vendors that do business with any individual or organization are required to have adequate and proper insurance coverage.

This requirement covers minimum policy limits as well as specified financial and stability standards for the insurance companies that issue the policies.

These clauses are in place to guarantee that an organization won’t be held financially liable for any liabilities brought on by vendors and other parties with whom they conduct business.

By obtaining an appropriate certificate of insurance and maintaining a current certificate of insurance on file, you will have evidence that insurance has been obtained which transfers risks associated with the business relationship with the vendor from your organization to the insurer.

Now

  • What is a vendor certificate of insurance?
  • A vendor certificate of insurance sample
  • Why do you need a certificate of insurance from a vendor?
  • When do you need a certificate of insurance from a vendor?
  • How to request a certificate of insurance from a vendor
  • How long does it take to receive a vendor certificate of insurance?
  • How much does it cost to obtain a vendor certificate of insurance?
  • How to write a letter requesting a vendor certificate of insurance
  • Sample letter requesting certificate of insurance from vendor
  • What should I do after receiving a vendor certificate of insurance?
  • etc.

Here are the answers to the above questions

What is a vendor certificate of insurance?

A vendor certificate of insurance is an official document from an insurance company to certify that a vendor named in the certificate is duly insured as stated on the certificate at the time the certificate was issued.

Among other things, a vendor certificate of insurance contains the name of the insurer and insured type of insurance, coverage, policy numbers, effective dates, endorsements, limits, cancellation procedure, special Provisions, e.g., additional insured, and the name of the representative authorizing the policy. etc.

A Certificate of Insurance is intended to prove a vendor’s insurance coverage in a standard and easily understood format.

A vendor certificate of insurance sample

The following is a sample vendor certificate of insurance from an insurance company

vendor certificate of insurance, vendor certificate of insurance sample
image credit: certificateof.com
image 1
Illustrated sample of vendor certificate of insurance, image credit: wedsure.com

Why do you need a certificate of insurance from a vendor?

Anytime you work with a vendor, your company could become liable for its actions, whether the liability is in the form of materials, equipment, or services.

By obtaining an appropriate certificate of insurance and maintaining a current certificate of insurance on file, you will have evidence that insurance has been obtained which transfers risks associated with the business relationship with the vendor from your organization to the insurer.

Also having a vendor certificate of insurance in your files will help you quickly access the coverage information at the time of loss.

The vendor certificate of insurance contains only the required information (per your request), this will save a bunch of time when it comes to making references and mitigating the loss.

So it is very clear that you need a certificate of insurance from a vendor to ensure a risk-free business relationship.

When do you need a certificate of insurance from a vendor?

You need a certificate of insurance from a vendor before he enters your premises and starts to do any work.

That means, prior to your service contract you should inform the vendor of all applicable insurance policies you will need a certificate. You can make it part of the application process.

The good thing is if insurance coverage is dictated clearly within the service contract, the vendor will automatically be required to provide a certificate of insurance.

This will help you save the time of obtaining a certificate from the vendor.

Generally, to be on the safe side, a vendor shall never enter your premise and start his work before you have a valid certificate of insurance for all relevant insurance policies from his insurer.

You may also need a certificate of insurance from a vendor when you lease him a property or equipment.

How to request a certificate of insurance from a vendor

Generally, there are two common ways to request a certificate of insurance from a vendor, one is to make a vendor certificate of insurance as a part of the application process and two is to write a request letter.

The first way is more effective when you are hiring a new vendor and the second way is more effective when you are working with an existing vendor.

Experienced contractors may automatically produce a certificate of insurance if insurance coverage is explicitly stated in the contract.

Others, on the other hand, may require a gentle push.

Writing a formal letter requesting a certificate of insurance offers them the push they need to get started.

Where do I send my request to obtain a vendor certificate of insurance?

You have to send your request to obtain a vendor certificate of insurance to the vendor.

From there, vendors can reach out to their insurance broker or provider directly to discuss how they can heed your request.

How much does it cost to obtain a vendor certificate of insurance?

Basically, it is FREE to obtain a vendor certificate of insurance from an insurance company.

Some agents may charge the policyholder an annual service fee that includes a nominal fee or the cost of providing a certificate of insurance.

It is forever free when the certificate of insurance can be easily downloaded or printed from the insurer’s website.

How long does it take to obtain a vendor certificate of insurance?

Generally, it takes a few days to weeks to obtain a vendor certificate of insurance depending on how quickly the insurer can finish the documentation.

After the policy is issued, some providers allow policyholders to download a certificate of insurance from their website, which is often significantly faster.

How to write a letter requesting a vendor certificate of insurance

A letter requesting a vendor certificate of insurance is written in a business letter format. Begin your letter with your address and contact information, followed by a date and the vendor’s address, and state that you are writing to request a certificate of insurance and provide the details of all applicable insurance policies you need, and include any further steps to be taken.

REMEMBER the aim of your request letter is to formally request an insurance certificate from the vendor.

Therefore, the following is how you can write an effective letter requesting a certificate of insurance from vendors;

  • Provide your name, address, and contact information-Use your company’s Letterhead
  • Include the date of the letter
  • Include the vendor’s, name, address, and contact information
  • Open your letter by stating clearly that you are writing to request a Certificate of Insurance
  • Make reference to your service agreement.
  • Specify how the COI should be sent
  • Specify the timeframe for receiving the COI
  • Attach any necessary documentation eg. service agreement
  • Be concise and to the point
  • Maintain a professional tone
  • Be honest

Sample letter requesting certificate of insurance from vendors

The following is a sample letter requesting a certificate of insurance from the vendors

LETTERHEAD

DATE

[Vendor’s Name]
[Vendor’s Street Address]
[Vendor’s City, State, and Zip Code]

Dear [Recipient’s last name]

Re: Request for Certificate of Insurance

This is to inform you that in order for our strawberries supplier contract to be approved, we require a Certificate of Insurance evidencing the following

  • List all applicable insurance policies for example;
  • Professional Liability $1,000,000 (errors & omissions)
  • General liability coverage with minimum limits of $1,000,000
  • Motor vehicle liability $1,000,000.
  • etc.

Kindly ask your insurance agent to fax the certificate to _______ Attn: __________

Please note: The certificate is due prior to the actual work start date as indicated in our service agreement.

Additionally, we require your insurance company to sign and date below, acknowledging that they will notify us by calling [phone number] or email [email address], if the insurance is canceled or modified.

Insurance Agent Signature____________________ Date:____________

If you have any questions regarding this letter, feel free to contact me at [phone number] or email [email address]

Sincerely

Signature

Name

Position

Enclosed with this letter: Our service agreement

Letter requesting certificate of insurance from vendors pdf

What should I do after receiving a vendor certificate of insurance?

what to do after receiving a vendor certificate of insurance, How to read a vendor certificate of insurance
How to read a vendor certificate of insurance, image credit: by Campbell Risk Management 

After receiving a vendor certificate of insurance examine the document thoroughly to ensure that it has all of the coverages and endorsements that your contract requires.

Having a vendor certificate of insurance does not guarantee that you are completely insured.

Vendor certificates of insurance can also be forged or misrepresented, and coverage may have lapsed since they were first given, so paying attention to the facts will help you verify you’re protected.

Furthermore, coverage may only apply to the policyholder, so if your company expects to be covered under your contractor’s policy, you may need to obtain an additional insured endorsement.

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Isack Kimaro
Isack Kimaro

Holder of Bachelor of Laws (LL.B) and Post Graduate Diploma in Legal Practice. I am dedicated to providing valuable and easy-to-understand legal information for individuals at all levels of understanding. Whether you are a layperson looking to increase your knowledge, a law student striving to excel in your studies, or a practicing lawyer wanting to expand your expertise, I am here to help. I'm not creating content, I'm creating awareness to empower you to take control of your legal understanding and achieve your goals.