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Free sample letter requesting certificate of insurance from vendors [2024]

A letter requesting a certificate of insurance from vendors is a document that asks a company or individual to provide proof that they have an insurance policy.

This letter is typically required by businesses when they work with vendors or contractors to ensure that they are protected in case of any accidents or damages that may occur during the course of their work.

It specifies what type of insurance is required and provides instructions on how to submit the certificate of insurance.

But before we jump to the sample letter, I want to ensure that you understand the basics of a vendor’s certificate of insurance (COI).

Because;

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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 a certificate of insurance from a vendor.

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 a certificate of insurance from the vendor
  • What should I do after receiving a vendor certificate of insurance?
  • etc.

Here are the answers to the above questions

See: Loan request letter

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.

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.

Key Takeaway: A certificate of insurance is a document that proves a vendor’s insurance coverage in a clear format. It is required for service vendors and contains information about the insurer, coverage, and policy details. Obtaining and maintaining a current certificate of insurance transfers the insurance risk from the organization to the insurer.

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?

Generally, whenever your company works with a vendor, the vendor’s actions could make your company liable for any damages caused, whether they are related to materials, equipment, or services.

For example;

Let’s say your company hires a vendor to install new electrical wiring in your office building.

During the installation process, one of the vendor’s employees accidentally damages a wall, causing it to collapse.

If the vendor doesn’t have insurance to cover the cost of repairing the wall, your company could be held liable for the damages.

This is why it’s important to request a certificate of insurance from vendors before working with them, to ensure that they have the necessary coverage to protect both themselves and your company in case of accidents or damages.

When you request a certificate of insurance from a vendor and keep it on your records, you have proof that they have obtained insurance coverage.

This means, in case of any accidents, damages, or other issues related to the vendor’s work, the insurer will be responsible for covering the costs instead of your company.

In other words, obtaining and maintaining a current certificate of insurance helps shift the risk associated with the vendor’s work 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.

Key Takeaway: You need a certificate of insurance from a vendor to make sure that the vendor is properly covered and you will not be liable for any damages caused by their actions.

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.

The best practice is to inform the vendor of all applicable insurance policies you will need a certificate prior to signing your service contract.

To make sure you do not overlook this, I advise you to make it a part of the application process.

That means a vendor shall not bother to apply if he doesn’t have proper insurance coverage.

Then, your contract of service must require him to bring a certificate of insurance before doing anything.

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

Key takeaway: It is important to obtain a certificate of insurance from vendors before they start working on your premises

How to request a certificate of insurance from a vendor

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

The first way is more effective when you are hiring a new vendor.

The second way is more effective when you are working with an existing vendor.

In most cases experienced vendors automatically produce their certificate of insurance if insurance coverage is explicitly stated in the contract.

But sometimes you need a gentle push to make some vendors to provide their certificate.

And writing a formal letter requesting the certificate gives 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.

But 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

Sample letter requesting certificate of insurance from subcontractors

letter requesting certificate of insurance from subcontractors, sample letter requesting certificate of insurance from subcontractors

DATE

[Subcontractor’s Name]
[Subcontractor’sStreet Address]
[Subcontractor’s City, State, and Zip Code]

Dear [Recipient’s last name]

Re: Request for Certificate of Insurance

I hope this letter finds you well. We are excited to be working with your company on our upcoming project. As part of our requirements, we need to ensure that all our subcontractors have the appropriate insurance coverage.

Therefore, we kindly request that you provide us with a certificate of insurance (COI) before beginning work on the project. The COI should include the following coverages and endorsements:

  1. General Liability Insurance
  2. Worker’s Compensation Insurance
  3. Automobile Liability Insurance

Please ensure that the certificate of insurance has the correct coverage amounts and expiration dates as required by our contract. In addition, we would appreciate it if you could include our company as an additional insured on your policy.

It’s important to note that we take insurance coverage seriously and want to ensure that our project is adequately protected. Please provide us with the COI as soon as possible so that we can move forward with our project in a timely manner.

If you have any questions or concerns regarding this request, please do not hesitate to contact us.

Thank you for your cooperation and we look forward to working with you.

Best regards,

[Your Name]

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

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.

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 

Key takeaway: After receiving a vendor certificate of insurance thoroughly examine a vendor’s certificate of insurance to ensure it has all the necessary coverages and endorsements required by your contract

Isack Kimaro
Isack Kimaro

Isack Kimaro, a lawyer, Creative Writer and self-taught SEO expert has been a prominent author of law-related topics since 2017. Through hard work, dedication, and a relentless pursuit of knowledge, Isack has successfully navigated the legal industry by providing valuable and easy-to-understand legal information to 500,000+ individuals of all levels of understanding.