The SC Municipal Insurance and Risk Financing Fund and SC Municipal Insurance Trust issue certificates of insurance based on requests from its members. The certificates can be used for special events, evidence of coverage and sporting events.
What is a certificate of insurance?
A certificate of insurance is a document that establishes that there is an active insurance policy in place at any given moment with specific lines of insurance coverage and limits of those coverages. The COI can be provided by SCMIT or SCMIRF members to banks, school districts, auto dealerships, rental/leasing companies, government agencies and railroad companies.
A certificate of insurance can also be provided to a municipality by a third-party vendor or contractor showing limits of liability insurance for work performed or services rendered through a written agreement.
Why should certificates of insurance be required?
It is used as proof to verify that the municipality, vendor or third-party contractor has an active insurance policy with the required coverage and limits before entering into a contract or agreement.
When should a certificate of insurance be requested and provided?
- Hiring vendors or contractors
- Entering into leasing or rental agreements
- Contractual requirements for loan agreements
- Sponsoring special events
- Sponsoring sporting events
- Rental of municipal property
- Evidence of workers’ compensation coverage
What are some additional requirements that should be included on a certificate of insurance?
- Certificates from vendors and contractors should provide liability limits that are at least $1 million per occurrence with a $2 million aggregate limit.
- Liquor liability should be included if alcohol will be involved.
- Municipalities should be named as an additional insured on the vendor or contractor general liability policy. If the municipality is not listed as an additional insured, the risk has not been transferred.
How can SCMIT or SCMIRF members request certificates?
Members can submit COI requests in the policy portal. Certain certificates are auto approved and can be generated immediately while others may require underwriting approval. Notifications of approval or rejection of the certificate submission are provided to the member when the certificate is processed by underwriting. Existing certificates can be accessed and printed on demand on the portal. There is also functionality to clone an existing certificate to create an updated version.
A COI module instructional document that includes step by step instructions is available online.
For additional information about certificates of insurance or the COI Module contact underwriting staff at navriskpolicy@masc.sc.