The Complete Guide To Certificates of Insurance (COIs)

A COI is primarily a transactional document. It is requested, issued and reviewed as part of doing business once you buy a policy. It is essentially used as verification that you have a business insurance policy that has coverage a client wants to insulate them from risk if an incident happens.

Generally speaking, you'll likely be in this following situation when getting one:

• A client, landlord or partner requires proof of insurance
• They provide specific requirements (coverage types, limits, endorsements)
• You request a COI from your insurer
• The COI is issued and sent for review
• The third party approves it or asks for changes

This process often happens quickly, sometimes instantly, and can delay work if not handled correctly. If something is missing from the COI, it means it is missing from your policy. The certificate cannot add or modify coverage.

You typically need a COI anytime another party wants proof that your business is insured, most commonly including these scenarios:

• Client work: Required before starting a project or signing an agreement
• Commercial leases: Landlords require proof before granting access to space
• Contracting and subcontracting: General contractors require COIs from subcontractors
• Vendor relationships: Businesses require COIs from vendors to reduce risk

More often than not, you'll be required to show proof of general liability, workers' comp and/or commercial property coverage in most cases. Though in some industries like the financial or tech sector, you may need professional and/or cyber liability.

Getting a COI is typically quick and handled through your insurer, agent or online portal:

1. Review the requirements: Identify what the requesting party needs, including limits and endorsements
2. Contact your insurer or log into your account: Many insurers allow instant COI generation online
3. Provide certificate holder details: Include the exact name and address of the requesting party
4. Request required endorsements: If needed, ask for additional insured or primary and noncontributory wording
5. Receive and send the COI: Most are issued same-day or instantly

This is where many businesses run into issues and a COI must match the request exactly, or else it is at risk of breaching contract legally.

You should verify the following before sending your COI

• Business name matches your legal entity
• Certificate holder is listed correctly
• Coverage types match requirements
• Limits meet or exceed what is requested
• Policy dates are active and valid
• Endorsements are included if required
• Naming conventions are matched exactly to contract wording