What does Certificate of Insurance mean?

It is basically the certifying document which proves the existence of an insurance policy. The policy holder receives this document from the issuing party, and on it will be basically displayed the type of insurance one has, the financial details like the cost of it, and of course the insured’s personal details.

Certificate of Insurance explained

One of the main purposes for the existence of such a certificate is that many times an employer at a large company might ask for such a certificate before hiring an individual. For example, if it hires a driver for its vehicles, the employer wishes to know whether the person is covered for certain liabilities, so that if problems arise from the part of the employee he is insured against those liabilities. This is mostly the case when companies hire individuals from different agencies.