If you run a business, you have probably been asked to "provide a certificate of insurance" by a client, a landlord, or a general contractor. The request often comes with a deadline, a list of requirements, and not much explanation.
A certificate of insurance (COI) is one of the most common documents in business insurance, and understanding what it is, what it contains, and what it does not do will save you confusion and keep your projects moving.
What is a certificate of insurance?
A certificate of insurance is a one-page document that summarizes your insurance coverage. It is not a policy. It does not change your coverage. It is proof that you have active insurance policies with specific coverage types and limits.
Think of it like a driver's license for your business insurance. It confirms that coverage exists, shows the key details, and gives the requesting party a way to verify it with your insurer.
The standard form used across the insurance industry is the ACORD 25 certificate. You will see "ACORD" printed at the top of almost every COI you encounter. The format is standardized so that anyone reading it can quickly find the information they need.
What is on a certificate of insurance?
A standard COI includes:
Named insured. Your business name and address as it appears on your policy.
Insurance carriers. The names and NAIC numbers of the companies providing your coverage.
Policy numbers. The unique number for each policy listed.
Policy effective and expiration dates. This shows whether your coverage is current.
Coverage types and limits. The core of the certificate. This section lists each type of coverage you carry and your limits for each:
- General liability with per-occurrence and general aggregate limits
- Commercial auto with combined single limits or split limits
- Umbrella/excess liability with per-occurrence and aggregate limits
- Workers compensation with statutory limits
- Professional liability or other specialty coverage
Certificate holder. The person or company that requested the certificate. Their name and address appear in the designated box.
Description of operations. A free-text field where specific project details, additional insured status, or waiver of subrogation language can be noted.
Why clients and landlords ask for a COI
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Get a Free QuotePeople ask for certificates of insurance because they want to verify that you will not create an uninsured liability for them. Here are the most common situations:
General contractors hiring subcontractors. Before a GC lets you on a job site, they need to know you have general liability and workers comp. If one of your employees gets hurt or you damage something on the site, your insurance should respond first, not the GC's.
Landlords leasing commercial space. Your lease almost certainly requires you to maintain general liability insurance and name the landlord as an additional insured. The COI proves you are meeting that obligation.
Clients hiring service providers. If you are a consultant, IT provider, cleaning company, or any other service business, clients want to know you have coverage before you start working on their premises or handling their data.
Event venues. If you are hosting an event at a venue, they will want proof that you have event liability coverage or general liability that covers the event.
What "additional insured" means
This is where certificates of insurance get more interesting. Being listed as the "certificate holder" on a COI does not give the holder any coverage rights. It is just notification.
Being listed as an "additional insured" is different. An additional insured is actually covered under your policy for liability arising from your work or operations. If you are a subcontractor and the GC is named as an additional insured on your general liability policy, the GC has coverage under your policy for claims related to your work.
Additional insured status is added to your policy through an endorsement. Your agent processes this endorsement, and it is then referenced on the certificate. The COI alone does not create additional insured status. The endorsement on your actual policy does.
This is an important distinction. If someone asks to be named as an additional insured, your agent needs to add an endorsement to your policy, not just list them on the certificate.
What "waiver of subrogation" means
Subrogation is the right of your insurer to recover claim payments from a responsible third party. A waiver of subrogation gives up that right.
Here is an example: you are a subcontractor, and your work causes damage on a job site. Your insurer pays the claim. Normally, your insurer could then go after the GC's insurer to recover the cost if the GC shared some fault. A waiver of subrogation prevents your insurer from doing that.
GCs and landlords commonly request waivers of subrogation to protect themselves from being pursued by your insurer after a claim. Like additional insured status, a waiver of subrogation is added to your policy through an endorsement, and it costs a small additional premium in most cases.
How to request a certificate of insurance
Getting a COI is straightforward:
Most agents can issue a standard certificate within 24 hours, often the same day. If additional insured endorsements or waivers of subrogation are needed, it may take slightly longer to process the endorsement with the carrier.
At our agency, we handle COI requests regularly for our commercial clients. It is one of the most common day-to-day tasks in commercial insurance, and we aim to turn them around quickly so you can get to work.
Common COI mistakes
Waiting until the last minute. If you know a project starts Monday, do not call your agent Friday at 4 PM. Give your agent time to process the certificate and any required endorsements.
Not reading the contract requirements. Many contracts specify exact coverage limits, specific endorsement forms, and precise language. If the certificate does not match the contract requirements, the requesting party will reject it. Read the requirements carefully and share them with your agent.
Assuming the certificate creates coverage. The certificate is a summary, not a policy. If your policy lapses or is canceled, the certificate is meaningless. Keep your policies active and pay your premiums on time.
Not requesting certificates from your own subcontractors. If you hire subcontractors, you should be requesting COIs from them. If an uninsured sub causes damage or an injury on your project, you could be held liable. Make COI collection part of your subcontractor onboarding process.
Keeping your certificates current
Certificates expire when the underlying policies expire. When your policies renew, you need to issue updated certificates to anyone who requires them. Your agent can maintain a certificate holder list and automatically issue renewal certificates when your policies renew.
If you have multiple clients, landlords, or GCs who need certificates, this list becomes essential. A missed renewal certificate can trigger a default under a lease or a stop-work order on a project. Let your agent manage this proactively.
Frequently asked questions
A certificate of insurance (COI) is a one-page document that summarizes your business insurance coverage, including policy types, limits, effective dates, and carrier information. It serves as proof that you have active insurance but does not change or create coverage on its own.
Being named as an additional insured means you are actually covered under someone else's insurance policy for liability arising from their work or operations. This is done through a policy endorsement, not simply by being listed on a certificate. It provides real coverage rights, unlike being listed as a certificate holder.
A standard certificate can usually be issued the same day or within 24 hours. If additional insured endorsements or waivers of subrogation are required, processing the policy endorsement may take slightly longer. Provide your agent with the requirements as early as possible to avoid delays.
The certificate itself is typically issued at no charge. However, if the requesting party requires endorsements such as additional insured status or a waiver of subrogation, those endorsements may carry a small additional premium, usually modest in the context of your overall policy cost.