There is one thing that many people want from their insurance other than protection, and that is a certificate of currency.
A certificate of currency is a document issued by the insurer or your insurance broker which confirms the details of your cover.
In this guide we’ll take a look at what purpose the certificate serves along with a number of other issues surrounding them.
What is a Certificate of Currency?
A business will often be asked for a certificate of currency to confirm that they have the right public liability in place. Commonly it will be requested by other businesses or government departments.
The certificate will confirm the details of your cover, and although the information can differ from one insurer to the next it will commonly include the following:
- The name of the insured person or business
- A brief description of the business activities covered
- The type of cover held
- The amount of cover held
- The start and finish date for the cover
In some cases the certificate may also include any endorsements or exclusions that apply to the policy, but this is not always the case.
In some cases a special certificate of currency will be required. The most common example is that of Qld electrical contractors.
When applying for or renewing a Qld electrical contractors licence you need to provide the licensing department with a special certificate that is based on the approved government template.
If you require a special certificate it is important to check with the insurer or the broker upfront that they can provide one, as not all of them will be able to.
Unfortunately there is a growing problem (especially amongst tradesmen) to take out public liability insurance, and then to cancel the policy as soon as they receive their certificate of currency.
Because the certificate covers the full twelve month term, the person will then provide that certificate to everyone they deal with, and unfortunately there is no way for the other business to know that the person is not actually insured.
Thankfully it is very much the minority of people doing this, but many insurance brokers have found that it is a growing problem that they struggle to deal with.
As a result of this activity by some tradesmen, many brokers now refuse to deal with tradies unless they pay the full annual premium upfront.
Tradies and other people engaging in this activity need to know that what they are doing borders on fraudulent activity, as they are providing an insurance document to someone will full knowledge that no cover is actually in place.
Order a Certificate of Currency
If you have used the services of an insurance broker or adviser to arrange your public liability insurance, the best option is to contact them and request a certificate.
If you arranged your insurance directly through the insurance company, you will need to contact them directly to order the certificate.
Once you have a copy of your certificate it is a great idea to keep an extra copy for safe keeping. That way each time someone requests one you already have a copy ready to go.