Insurance cover note

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Insurance cover note
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Insurance cover note is a temporary document provided by an insurance company, which is a proof of insurance coverage. The document is issued for a specified time until the final insurance proof is given. Cover note contains personal data of the insured and what is covered with an insurance policy[1][2].

Purpose of cover note

Cover notes are provided because of several causes they are helpful:

  • Negotiations

There is usually no problem when it comes to get an insurance policy for an average citizen, because their applications are often similar and the risk of loosing money is low. When the application comes from a big company, or the insured sum is bigger than average, it is profitable for the insurance company to negotiate terms and conditions of policy. Risk which is naturally related to big insurance policies must be calculated before any final decisions. As the audit of application takes some time, the applicant usually can not wait for the final insurance policy. A cover note allows him to use the subject of application, as the cover note contains some proofs of insurance[3].

  • Using subject of application earlier

When the application for insurance policy begins, it is convenient for the applicant to get a cover note. As the cover note contains proof of insurance, it is possible to make a use of the subject of insurance application, before getting the final insurance policy. The best example of this cause is the application for car insurance. Cover note gives the owner of the car a proof of insurance and allows him to drive it before the application process is finished.

  • Partial insurance policy

Cover notes are issued when the negotiations for insurance are underway, and some parts of the policy are fully prepared. It allows the insurance company to serve the client with the best service as they can work on more complicated parts of policy[4].

  • Insurance of ware

In the trade industry, time is one of the biggest valuables. As the orders for transport and other services often come suddenly, it is needed to prepare the shipment quick and protect it with insurance. Cover notes let trading companies provide their services without wasting time on wiating for full insurance[5].

Differences between cover note and full policy

Cover notes are documents provided by insurance companies for the short time between application for the policy and granting a full coverage. As the documents are simplified forms of full policy, they contain only general data of insured. A common practice of insurance companies is to prepare those kind of documents as a template. So that, cover notes usually does not contain information about every details of bought insurance policy. Other thing which does not grant the insured full rights to the policy is difference of terms of policy and terms of cover note. Client with cover note should be aware that the cover note can not cover some terms and conditions negotiated with the insurance company[6].


  1. Clark J. (2013)
  2. Sethi J., Bhatia N. (2012)
  3. Sethi J., Bhatia N. (2012)
  4. Sethi J., Bhatia N. (2012)
  5. Carr I., Stone P. (2014)
  6. Merkin R. (2014)


Author: Anna Marzec