November 21, 2009

The company retained to provide cargo insurance issues the Certificate of Insurance. It is often a required document for letter of credit negotiation, and is used in lieu of an actual (full) insurance policy submittal as evidence that the shipment is insured.
Definition of a Certificate of Insurance
Seller's written certificate of insurance.
Purpose of a Certificate of Insurance
It is necessary to furnish insurance certificates when the seller provides insurance. The certificates are negotiable documents, as such, they must be endorsed before they are submitted to the bank.
Process for a Certificate of Insurance
A Certificate of Insurance is obtained from the insuring agency in lieu of the full policy.
The Certificate of Insurance is included in the negotiable document set.
Fields for a Certificate of Insurance
Not Applicable - Commercial insurance companies have their own forms and practices.
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