Insurance Certificate is usually obligatory in service contracts, construction projects, commercial lease agreements, a vendor onboarding process, and event management. It avoids the transfer of financial risks to an irresponsible party. As an example, a contractor may be operating in a mall and the mall management would desire to be assured that in the event of any damage, the contractor would be covered in his insurer. The insurance certificate makes the process of verification faster and prevents the need to read lengthy policy contracts. It is a legally established evidence of sound insurance cover where the coverage limits are well articulated. Lack of this can lead to denial of entry, employment or approval; since insurance risk has always to be checked.