What is a Certificate of Currency
What is a Certificate of Currency:
A Certificate of Currency is a document that confirms a current insurance policy is in place. A certificate of currency outlines the sums insured on the date of the certificate. A Certificate of Currency is valid only for the day on which it is issued and represents information current at the time of your request. Important Factors of a Certificate of Currency:
- Valid on the day it is issued.
- Provides a summary of provisions in longer-form insurance policy wording.
- Maybe requested by third-parties when rendering services.
- Do not enable you to make an insurance claim.
More Depth on a Certificate of Currency:
1: Valid on the day it is issued: A Certificate of Currency is valid on the day they are issued. When a Certificate of Currency is issued, they indicate that an insurance policy is active and valid. However, on the days after a Certificate of Currency has been issued, an insurance policy may have been cancelled, changed or revoked and as such, the Certificate of Currency cannot provide insight to the continuation of an insurance policy beyond the day on which it has been issued.
2: Provides a summary of provisions in longer-form insurance policy wording: A Certificate of Currency provides a summary of the provisions that are covered in a longer-from insurance policy wording. This enables you to accurately understand the core coverage that your insurance provides and often the limits of the cover that is in place.
3: Can be requested by third-parties when rendering services: Certificates of Currency are used to confirm that insurance is in place and the depth of cover that the policy provides. Often a certificate of currency is requested by third-parties when a service is being rendered. The certificate of Currency shows that there is sufficient insurance in place and can enable people to enter a premise and perform the required work.
4: Do not enable you to make an insurance claim: A certificate of currency does not enable you to make a claim on an insurance policy. Often you'll need to have your original insurance documents in full and given that a Certificate of Currency provides a summary, whilst there might be some helpful information for initiating a claim with your insurer, your insurer may request the exhaustive documentation.
To access a certificate of currency, please contact your insurer directly or your insurance broker. To find an insurance broker use Advisr and see ratings and reviews from customers, just like you on what it is like to work with different insurance brokers.
Advisr does not provide advice and does not hold a financial service license (AFSL). All information above has been provided by Andy Jamieson.