Cover Note

What is a cover note and what does it do? A cover note provides proof of what the insurance contract covers and that it is in effect at that particular time.

A cover note can include the following information:

  • Who is the person with the insurance - named insured.
  • Who is the insurance company providing the coverage.
  • What is the policy number and the effective and expiration dates.
  • What type of policy is providing the coverage.
  • What is the limit of the insurance.
  • Location of where the work is performed.
  • Who are interested parties. This could include a lease holder, additional insured or loss payable.
  • Mortgage clause if any applies.
  • Who is issuing this document.

A cover note can be required by a leasing company for an automobile. It could also be for a piece of equipment. Sometimes a cover note is required so that a contractor can proceed with his/her work. This could be anything from hauling loads of fertilizer with a tractor/trailer to working on the new hospital building.

It is important to remember that a cover note is only good for the day that it is written unless there is a clause that notice must be provided if the insurance is lapsed or canceled. If this clause is included then the loss payable or additional insured must be notified when the insurance is going to be discontinued.