What is a certificate of insurance primarily used for?

A certificate of insurance is primarily utilized to verify the existence of insurance coverage. This document serves as proof that an individual or organization holds a specific insurance policy, outlining essential information regarding the coverage such as the type of insurance, the policy limits, the effective dates, and the name of the insured.

The certificate is often requested by parties requiring confirmation of insurance to mitigate risk, such as landlords, clients, or other entities involved in a contractual relationship. Since it is essentially an assurance that the necessary coverage is in place, the certificate can play a crucial role in business transactions and compliance with regulations.

Other options do not serve the primary function of the certificate of insurance. For instance, showing the vehicle’s market value or providing details on the insured vehicle's specifications is unrelated to the certificate’s purpose. Additionally, while submitting a claim for damages is an important process in the insurance context, it does not directly correlate with what a certificate of insurance is meant to communicate. Thus, verifying the existence of insurance coverage is the accurate representation of the function of a certificate of insurance.