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What is a Certificate of Currency

Jan 22, 2018
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If you own or operate a business in Australia, you've probably heard the term "Certificate of Currency" thrown around. But what exactly is it, and why is it essential for your business? In this post, we'll delve into the world of Certificates of Currency to help you understand their significance in the Australian business landscape.

What is a Certificate of Currency?

A Certificate of Currency, often abbreviated as CoC, is an official document that serves as evidence of insurance coverage. It is typically issued by an insurance company or insurance broker and provided to the insured or policyholder. In Australia, this document is commonly associated with various types of insurance, such as public liability insurance and professional indemnity insurance.

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.

Why is a Certificate of Currency Important?

Certificates of Currency hold immense significance for both businesses and individuals for several key reasons:

Proof of Insurance: The primary purpose of a Certificate of Currency is to demonstrate that the holder has a valid insurance policy. This proof of insurance is vital when dealing with clients, contractors, or regulatory bodies, as it provides assurance that you are financially protected in case of unforeseen events.
Legal Requirement: Many businesses in Australia are legally required to hold specific types of insurance, such as public liability insurance. A Certificate of Currency is often requested by government authorities, clients, or venues to ensure compliance with these legal requirements.
Contractual Obligations: When entering into contracts with clients or partners, you may be required to show evidence of insurance coverage. A Certificate of Currency can help you fulfill these contractual obligations and build trust with your business associates.
Risk Management: Beyond compliance, Certificates of Currency are essential for risk management. They help identify potential coverage gaps, policy limits, and expiry dates, allowing you to make informed decisions about your insurance needs.
Avoiding Disputes: In the event of an insurance claim, a Certificate of Currency can be invaluable in preventing disputes. It clearly outlines the terms and conditions of your coverage, reducing the chances of misunderstanding or disagreement.

How to Obtain a Certificate of Currency

To obtain a Certificate of Currency, you should follow these steps:

Contact your insurance provider or your insurance broker: Get in touch with the company that issued your insurance policy. They will be able to provide you with your Certificate of Currency.
Provide the necessary information: You may need to provide specific details about your insurance policy, such as the policy number and the type of insurance you hold.
Request the document: Make a formal request for the Certificate of Currency, specifying its purpose (e.g., for a client, government agency, or contractor).
Verify the details: Before using the Certificate, ensure that all the information on the document is accurate and up to date. Any discrepancies could lead to issues later on.

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Management Liability insurance is designed to provide protection to both the business and its directors or officers for claims of wrongful acts in the management of the business.

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A business insurance pack can provide cover for your business premises and contents, against loss, damage, theft or financial loss from an insured interruption to the business.

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Business Package

Purchase up to six products under one Business Insurance Package.

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Contact your insurance provider or your insurance broker: Get in touch with the company that issued your insurance policy. They will be able to provide you with your Certificate of Currency.
Provide the necessary information: You may need to provide specific details about your insurance policy, such as the policy number and the type of insurance you hold.
Request the document: Make a formal request for the Certificate of Currency, specifying its purpose (e.g., for a client, government agency, or contractor).
Verify the details: Before using the Certificate, ensure that all the information on the document is accurate and up to date. Any discrepancies could lead to issues later on.

Certificates of Currency (CoC) are not mere pieces of paper; they are powerful tools that serve as proof of your insurance coverage and compliance with legal and contractual obligations. In Australia, understanding the importance of these documents is crucial for businesses across various industries. By ensuring that you have and can readily provide a valid Certificate of Currency, you can protect your business, maintain your reputation, and establish trust with your stakeholders.

insurance policy

General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.

All information above has been provided by the author.

Andy Jamieson, ABN 17 613 588 266