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 commercial insurance 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.

Getting one usually follows this sequence:

• A client, landlord or partner asks for 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 signs off 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 usually need a COI anytime another party requires business insurance, most commonly in these scenarios:

• Client work: Needed before starting a project or signing an agreement
• Commercial leases: Landlords ask for proof before granting access to the space
• Contracting and subcontracting: General contractors collect COIs from subcontractors
• Vendor relationships: Businesses request 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.

Most COIs are quick to get and are 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 offer instant COI generation online
3. Provide certificate holder details: Include the exact name and address of the requesting party
4. Request required endorsements: Ask for additional insured or primary and noncontributory wording when the requesting party calls for it
5. Receive and send the COI: Most insurers issue it 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 the request
• Policy dates are active and valid
• Endorsements are included when required
• Naming conventions match the contract wording exactly