Mistakes in handling certificates of insurance are a significant cause of errors and omissions claims against insurance agents.
Typically this occurs when a certificate of insurance doesn’t accurately reflect the policy coverage.
In workers’ compensation, inaccuracies can come in the form of an alternate employer endorsement, waiver of subrogation endorsement, officer inclusion/exclusion and employer liability limits, which are listed on a certificate, but not on the policy. Remember that a certificate holder cannot be given notice of cancellation that is greater than what is due the insured via statute. These situations can also be problematic if noted on the certificate.