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At some point in running a business, someone will ask you for proof of insurance. A client onboarding you as a vendor. A landlord before you sign a lease. A general contractor before you start a job. A venue before your event. The document they want is a certificate of insurance, usually called a COI.
It’s a one-page summary, not the policy itself. But it’s often the difference between winning the contract and losing it.
What a COI is
A certificate of insurance is a standardized document, usually on the ACORD 25 form, that summarizes your business insurance coverage. It shows the types of coverage you carry, the policy limits, the effective and expiration dates, the insurer’s name, and your business name as the policyholder.
A COI is proof of coverage, not a contract. It doesn’t change or extend your policy, and it doesn’t guarantee coverage for any specific claim. It simply states, as of the issue date, that the listed policies are in force with the listed limits.
The standard sections on an ACORD 25 include general liability, automobile liability, umbrella or excess liability, and workers compensation. Each section lists the insurer, the policy number, the policy period, and the limits.
Why clients ask for one
Clients ask for COIs for the same reason you would: risk management. If you’re a contractor working on their property and something goes wrong, they want to know your insurance responds, not theirs.
It’s also a professionalism signal. Producing a current, accurate COI quickly tells a client you’re a legitimate, organized operation. Many procurement departments can’t approve a vendor without one, so having it ready speeds up the whole onboarding process.
Some clients go further and require that they be listed as an additional insured on your policy, which the COI will note. That gives them direct protection under your policy for work you do for them. Your agent can usually add this by endorsement when the contract requires it.
How to get one
If you already have business insurance, getting a COI is straightforward. Most carriers issue one with your policy documents at purchase, and you can request new ones anytime. Many insurers now let you generate one online through your account portal, often instantly. Otherwise, call your agent or broker and ask. It’s a routine request and there is typically no charge.
Speed matters here. When a client asks for a COI, they usually need it before work starts, and sometimes within days. Knowing exactly how to request one from your carrier, and having your agent’s direct contact, avoids a delay that can hold up a project.
What to check on a COI you receive
The other side of this matters too. When you hire subcontractors or vendors, you should ask for their COIs before work begins. Review each one for these points:
- The business name on the certificate matches the company you hired.
- The coverage types match the work being done. A contractor needs general liability and usually workers comp.
- The limits are adequate for the risk. Your contract may specify minimums.
- The policy dates cover the full project period. A policy expiring mid-project is a problem.
- The insurer is legitimate and licensed.
If the coverage doesn’t match what you need, ask for an updated certificate before work starts. If the vendor can’t produce adequate coverage, that’s useful information about who you’re hiring.
Common mistakes
The most common mistake is letting a COI go stale. Coverage lapses, policies renew with different terms, and limits change. A certificate from last year proves nothing about today. Collect fresh certificates annually, or whenever a new project starts.
Another mistake is accepting a COI without reading it. The certificate holder box, the description of operations, and any additional insured language all matter. A COI that lists the wrong entity as the certificate holder may not satisfy the contract requirement.
For business owners building out their coverage, a COI is a good reason to review whether the underlying policies are adequate. If a client requires $2 million in general liability insurance and your policy only has $1 million, you’ll find out at the worst possible moment. Keep your business owner’s policy limits aligned with what your clients actually require, and the COI becomes a formality instead of a fire drill.
