Certificate of Insurance (COI)

Every industry loves a good acronym. Insurance is no exception. A certificate, like a binder, is also a form of proof that insurance exists, but it is not intended for a lender. Certificates deal more with the liability aspect of the contract, not the physical damage coverage of property. Any other party needing proof that the insured is covered for their actions that may lead to physical harm to persons or property is guaranteed coverage by a certificate issued by the insurer. So, if you are a contractor and bidding on a job, the entity requesting the proposal may also want to be named in a certificate with proof of your limits of liability spelled out in the form’s contents. This party becomes the Certificate Holder and is guaranteed a notification by the insurance should the contractor, or insured, lapse the policy. The certificate usually expires when the job is complete.

Some certificate holders become a permanent party to the policy as the contractual relationship may continue permanently until it is severed by one of the parties. For example, a water tanker business may have an ongoing contract with a fire district to provide their services along with other similar businesses. The certificate provides proof to the fire district that the tanker has adequate coverage to enter the land where firefighting efforts are underway.

SR22 Certificate

An SR22 is a certificate required by the State of Oregon that guarantees you will be covered against injury to others and damage to property while driving on its streets and highways. All these parties requiring a certificate don’t care what happens to your property. They want to protect their property and the lives of those who dwell or work on their premises. So, in a way, the State of Oregon becomes the Certificate Holder until your Proof Required Until (PRU) date. That's the acronym for when your SR22 certificate is no longer needed.