A certificate of insurance (COI) is a one-page summary of your insurance that lists the carriers, policy numbers, coverage types, limits and effective dates, as proof that coverage was in place on the day it was issued. Landlords, general contractors and clients usually ask for one before they start doing business with you. It is information only: a certificate does not change your policy or create coverage, and on its own it does not make the certificate holder an additional insured.
Most people who ask for a COI assume the paper in their file means they are protected. Often it does not. The gap between a certificate holder and an additional insured drives a steady stream of errors and omissions claims against issuing agencies, and holders usually discover the problem at claim time.
Certificate of Insurance (COI)
A one-page document summarizing a business's insurance policies, issued as evidence that coverage existed on the date it was produced. Most liability certificates use the ACORD 25, a standardized industry form.
What is a certificate of insurance (COI)?
A certificate of insurance is a standardized summary that your insurance agent or broker issues to a third party, called the certificate holder, who wants proof you carry insurance. For liability coverage, nearly every certificate is issued on the ACORD 25 form, which lists each insurer, the policy numbers and dates, the limits, a description of operations, and the holder's name and address.
A sample certificate of insurance reads top to bottom in fixed blocks: the producer (your agency), the insured business, the insurers lettered A through F with their NAIC numbers, the coverage grid with each policy's limits and dates, the description of operations, and the certificate holder box. The insurer blocks show each carrier's legal name rather than its brand, which is why a certificate stays accurate through a carrier rebrand like Next Insurance becoming ERGO NEXT. The box a compliance desk reads hardest is the description of operations, which carries the project name, contract number, and any additional insured or waiver notations. Cite the endorsement form number behind each notation there, and attach that endorsement to the certificate.
The NAIC numbers do more than identify the insurer. Enter one in the National Association of Insurance Commissioners (NAIC) Consumer Insurance Search to see the insurer's complaint index, which compares its share of complaints with its share of premium. An index of 1.0 means an average number of complaints for an insurer of its size; a number well above that is worth a question before you rely on the certificate.[3]
When do you need a certificate of insurance?
You need a certificate of insurance whenever someone you are about to do business with asks for proof that you carry active insurance, usually before work or a lease starts. The most common requests:
| Who asks | Why they ask | What they usually require |
|---|---|---|
| Landlord | Tenant negligence at the leased premises | GL certificate, often with additional insured status |
| General contractor | Claims arising from a subcontractor's work | GL and workers comp certificates, additional insured, waiver of subrogation |
| Project owner | Vicarious liability for the contractor's operations | Certificates plus additional insured endorsements down the chain |
| Enterprise client | Contract compliance before onboarding | Certificates showing the minimum limits named in the contract |
| Equipment lessor | Damage its equipment causes in your hands | A certificate showing the lessor as additional insured on the lessee's CGL policy |
A typical construction contract asks for $1,000,000 per occurrence and $2,000,000 general aggregate, the default limits on most ISO CGL declarations, so the requirement rarely means buying more coverage. A certificate of insurance for contractors flows both directions: collect one from every sub and vendor, because an uninsured sub's injured employee can make you the statutory employer under workers compensation law, leaving your own policy to pay.
Does a certificate of insurance make someone an additional insured?
No, and this is where real money is lost. Under the standard ISO CGL policy, only an endorsement can grant additional insured status, and the certificate merely reports what the policy says. For a landlord or general contractor to actually get that status, three things must line up: the contract requires it, the policy is endorsed with a scheduled or blanket additional insured endorsement, and the certificate then reflects it.
On construction work the endorsement question splits in two. CG 20 10 covers the additional insured for ongoing operations, and CG 20 37 covers the products-completed operations hazard after the work is done. Most sophisticated construction contracts require both, and a certificate referencing only one does not satisfy them. Owners often require the CG 20 37 to stay in force for two or three years after completion, since defect claims surface late. When your contract entitles you to that status, ask for the endorsement itself, not just the certificate.
What else do contracts ask for alongside a COI?
Contracts that ask for a COI usually also ask for additional insured status, a waiver of subrogation, primary and noncontributory wording and notice of cancellation, and each one needs a policy change, not a line on the certificate:
- Additional insured status: as above, requires an endorsement.
- Waiver of subrogation: the insured's carrier agrees not to recover a paid loss from the other party. The workers comp policy needs the WC 00 03 13 endorsement, and some states prohibit it.
- Primary and noncontributory: the named insured's policy pays first, without asking the additional insured's own insurance to contribute. It requires the CG 20 01 endorsement on the ISO CGL policy.
- Notice of cancellation: contracts demand "30 days notice to the certificate holder," which the certificate cannot deliver. The current ACORD 25 (2016/03 edition) states only that notice will be given per the policy provisions.[1] Holder notice exists only if a cancellation endorsement grants it.
Each item is a policy matter your agent cannot create by typing it on a certificate, and many states now bar certificates that try to amend the policy at all. Texas Insurance Code Chapter 1811, for example, prohibits issuing a certificate that alters, amends, or extends the referenced policy, with civil penalties of up to $1,000 per infraction.[2] When reviewing a sub's COI, confirm the policy period covers your project dates and, for claims-made lines, that you understand the trigger.
Frequently asked questions
What does COI mean in insurance?
COI stands for certificate of insurance, a one-page summary of a company's policies and proof of coverage on the date it was issued. For liability the industry standard is the ACORD 25, listing each carrier with policy numbers, limits, and dates.
Is a certificate of insurance the same as an insurance policy?
No. The policy is a contract, often 50 pages or more with its endorsements, while the certificate is a one-page summary someone wrote from it. Several states have put the difference into law: Texas Insurance Code Chapter 1811, for example, says a certificate is not a policy and gives the holder no contract rights. When the two documents disagree, the policy controls.
Does being listed as a certificate holder give me any coverage?
No. A certificate holder only receives the certificate. To have rights under the policy, such as a defense and payment of claims, you must be an insured. For a third party that takes an additional insured endorsement attached to the policy itself, typically CG 20 10.
How long is a certificate of insurance valid?
A certificate is evidence of coverage as of its issue date, for the policy periods it lists. It does not guarantee the policies stay in force, and coverage can be canceled mid-term. The current ACORD 25 promises no cancellation notice beyond what the policy requires, which is why holders demand a fresh certificate at each renewal.
This guide is for educational purposes and summarizes standard ISO policy language. Your policy's specific terms, conditions, and endorsements control. Talk to a licensed broker about your actual exposures.
Before you rely on a certificate
A certificate of insurance is a one-page snapshot that proves your policies existed on the day it was issued, and little more. It does not add coverage, grant additional insured status, or force your carrier to warn a holder before canceling. Only an endorsement does that. Before you rely on anyone's COI, ask for the endorsement behind it and read it against your contract.
References
- 1.ACORD. “ACORD Forms.” https://www.acord.org/forms-search ↩
- 2.Texas Legislature. “Insurance Code Chapter 1811: Certificates of Property and Casualty Insurance.” https://statutes.capitol.texas.gov/Docs/IN/htm/IN.1811.htm ↩
- 3.NAIC. “How to File a Complaint and Research Complaints Against Insurance Carriers.” https://content.naic.org/article/how-file-complaint-and-research-complaints-against-insurance-carriers ↩