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Certificate of Currencies - A relic of the past?

For years, Certificate of Currencies have been considered the pivotal part of a customers insurance policy documentation by clients. It’s usually the first thing they request after a policy has been placed and has been used to provide proof of insurance, particularly for Tradesman, Contractors and businesses in the event industry. But, how much weight does this document really provide?

What is a Certificate of Currency?

A certificate of currency can be provided by Insurers upon placement of insurance. It’s essentially a certificate to confirm that insurance is in place for the insured and is often requested by head contractors, landlords and financiers.

Does it really carry it’s weight in gold?

The short answer is no. Even though someone may place cover and receive a copy of the COC – they may very well cancel the policy the next day. Imagine a tradie that is required to provide a COC to their head contractor to get on site the next day. They can easily get online for some Liability Insurance and place cover the same day, get a copy of their COC to provide to their employer and then cancel the policy within as little as 24 hours. Unless the employer has efficient procedures in place to ask for a copy of the COC annually, there is little to proof that the policy is actually still in place and remains in place. COC’s also don’t show if the insured is correctly insured for all of their activities and key exposures. Only the Policy Schedule and Policy Wording documents can do that.

While some insurers systems that brokers can access make it easy to download and provide the document to clients – a lot don’t, and the task of requesting and following up insurers for the COC can become a rigorous and time consuming task for brokers and staff. In fact, it’s been a recent topic of discussion in the industry, that some insurers may start charging for the process of providing COC’s.

What is the alternative?

Certificate of Placements can be provided by brokers to clients when cover has been put in place and paid for. It has similar details to a COC but can be issued by the broker from their own system.

Are Australian Businesses ready to accept Certificate of Placements?

Most businesses who are requesting COC’s from their suppliers, tenants and contractors are only doing it because they need to tick a box in their process that they have collected this document. They do not scrutinize it, often don’t even review it and simply ‘file it’. Ausure is currently trialing issuing Certificate of Placements to determine the percentage of principals, landlords etc that will accept a Certificate of Placements. If the trial finds that at least 66% of the time it is accepted, it will be deemed successful and a significant time saver for brokers and faster documents to clients.

Speak to an Ausure Insurance Broker today. Find your closest broker here, give us a call on 1300 587 225 or complete a quote request here.

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