What Is a Certificate of Insurance?
Key takeaways
- A certificate of insurance (COI) provides proof that insurance coverage is in force at a specific point in time.
- COIs are commonly needed in contracts, leases and vendor or contractor agreements.
- A COI summarizes key details such as the named insured, coverage types, limits and policy dates.
- A COI does not amend, extend or guarantee insurance coverage.
A certificate of insurance (COI) is a document issued by an insurance company or broker that provides proof of insurance coverage and summarizes key policy details, such as coverage types, limits and effective dates.
Before an insured begins work or enters into a contract or agreement, a client, vendor, landlord or general contractor – referred to as the COI holder – may request a COI to confirm that appropriate coverage is in place.
Requesting a COI is a common business practice that helps all parties verify coverage and prepare for potential claims or damages. Insurance providers issue COIs to help businesses meet contractual and project requirements.
Why a certificate of insurance matters
A COI matters because it proves that a business has an active insurance policy(s), potentially helping to:
- Protect other parties (including the COI holder) from financial risk.
- Ensure that contractual or legal requirements are met.
How COIs help verify insurance coverage
A COI helps businesses quickly verify that active insurance coverage exists before work begins. Instead of reviewing an entire insurance policy, the COI holder can review a single document that summarizes key details such as coverage types, limits and policy dates. This makes COIs a practical tool for everyday business decisions.
Common situations where COIs are required
These situations are common across many types of organizations, though they’re especially familiar to small business owners who regularly work with contractors, landlords and vendors.
- Job or contractor agreements - Before starting work, many contracts require contractors or subcontractors to provide a COI confirming the existence of an active policy(s).
- Leases and rental contracts - Landlords often request a COI from tenants to confirm the existence of an active policy(s) before allowing occupancy. This is common for commercial office space, retail locations and equipment rentals.
- Vendor and supplier relationships - Businesses may request COIs from vendors or suppliers to help manage risk when third parties are performing services or delivering goods.
What information is in a COI?
While a COI does not provide full policy language, it does summarize key pieces of information that help businesses understand the scope of coverage in place.
Named insured
The named insured is the individual or business that owns the insurance policy. It’s important that this name matches the legal entity listed in contracts or agreements.
Types of coverage
A COI lists the types of insurance coverage carried, such as general liability, workers compensation, commercial auto or professional liability.
Policy limits
Policy limits show the maximum amount the insurer may pay for covered claims, subject to policy terms and conditions.
Policy effective and expiration dates
COIs reflect coverage only during the listed policy period. Coverage may change after the expiration date, which is why reviewing dates is essential.
Certificate holder
The certificate holder is the person or organization requesting proof of insurance. This section identifies who receives the COI.
Additional insured status (if applicable)
Some contracts require one party to be listed as an additional insured. If applicable, the COI may indicate this status, often with reference to a related endorsement.
Insurer information
COIs typically include the name of the insurance carrier and identifying details to help verify the source of coverage.
When and why businesses request COIs
Companies ask for certificates of insurance to verify that their business partners have the right coverage in place before starting any work together. This helps them understand potential risks and ensures that everyone meets the required insurance standards upfront.
They protect against liability exposure
Requesting a COI can help businesses understand whether another party has insurance in place to respond to potential claims.
They ensure partners meet contract requirements
Many agreements specify coverage types or minimum limits required of the insured entering the agreement with the COI holder. A COI helps confirm whether those requirements are met.
They support risk management processes
COIs are often one part of a broader approach to managing vendor, contractor and partner risk.
COI vs. an insurance policy
Although COIs reference insurance coverage, they serve a different purpose than insurance policies themselves. The COI serves as proof the insurance exists and summarizes the coverage – it is not a policy. The policy document is the actual contractual coverage agreement between the insurance provider and the insured.
What a COI summarizes
A COI provides a high-level summary of coverage information, including policy types, limits and dates.
What it does not modify or guarantee
A COI does not amend, extend or alter coverage and does not guarantee that coverage will apply to a specific claim. All claims are subject to specific policy terms and conditions.
How much does a certificate of insurance cost?
A certificate of insurance is typically free to obtain. Most insurance providers issue COIs at no additional charge once an active policy is in place.
The cost of the underlying insurance policy, however, will vary depending on factors such as your business type, industry, location, number of employees and the types and limits of coverage you carry.
How to request a COI through Travelers
Travelers offers multiple ways for customers to request COIs, depending on their preferences and business needs.
Requesting a COI through your Travelers agent
Travelers customers can request a COI by contacting a Travelers agent, who can help ensure that the certificate reflects the correct information.
Using MyTravelers® online service portals
Travelers customers can request and manage COIs through MyTravelers, a self-service platform that allows customers to service policies online 24/7. MyTravelers provides a quick and convenient way for businesses to get COIs when they need them.
What information policyholders should have ready
When requesting a COI, it helps to have details such as the certificate holder’s name, required coverage types and any specific contract requirements.
Quick checklist: What to look for on a COI
Reviewing a COI carefully can help ensure that it meets contract and business requirements.
- Named insured - This shows whom the insurance policy belongs to.
- Coverage type(s) - Names the kinds of insurance in place.
- Policy limits - Shows coverage amounts.
- Effective and expiration dates - Confirms coverage timing.
- Certificate holder - Names who requested the COI.
- Endorsement verification - Confirms supporting documentation when required.
Compliance and legal notes
A COI is issued as evidence that insurance coverage exists. State insurance regulators define COIs as informational documents only – they are not insurance policies, do not confer rights on the certificate holder and may not be used to amend, extend or alter insurance coverage.1
Insurance regulations further clarify that the terms, conditions, exclusions and obligations of coverage are governed solely by the underlying insurance policy, not by the certificate itself. Because coverage may change, expire or be subject to policy provisions, a COI should not be relied on as a guarantee that coverage will apply to a specific claim or loss.2
How COIs support everyday business decisions
Requesting a COI is a standard part of doing business and can help confirm that the right coverage is in place before work begins. Understanding what a certificate of insurance includes – and why it may be required – can help business owners prepare for contracts, vendor relationships and project opportunities with greater clarity.
If you’re reviewing your coverage, learn more about general liability, workers compensation, professional liability, commercial auto or umbrella insurance, or whether a business owner’s policy (BOP) may help meet your business’s needs.
Sources
1 https://rules.sos.ga.gov/gac/120-2-103
2 https://app.leg.wa.gov/wac/default.aspx?cite=284-30-355&
