If you've ever bid on a job, signed a lease, or entered a vendor contract, you've been asked for a certificate of insurance. It's the most commonly requested insurance document in commercial business — and understanding what it does (and doesn't do) saves time and prevents contract delays.
What a COI Contains
A standard COI (ACORD 25 form) includes:
- Named insured: Your business name and address
- Insurance carrier(s): The company providing each coverage
- Policy numbers: For each active policy
- Coverage types: GL, commercial auto, umbrella, workers comp, etc.
- Policy limits: Per occurrence, aggregate, and other applicable limits
- Effective and expiration dates: When coverage starts and ends
- Certificate holder: The entity requesting the certificate
- Description of operations: Project or contract-specific notes
- Additional insured notation: If the holder is named as AI on your policy
Who Requests COIs?
- Landlords: Before you sign a commercial lease
- General contractors: Before subcontractors start work
- Clients: Before you begin a project or service engagement
- Event venues: Before allowing your event
- Government agencies: For permits and licensing
- Banks and lenders: For loan and lease agreements
COI vs. Additional Insured
This is the most common confusion in commercial insurance:
- COI = proof of insurance. It's informational only. The certificate holder has no coverage rights.
- Additional insured = actual coverage. The AI has coverage rights under your policy for claims arising from your operations.
When a contract says "provide proof of insurance and name us as additional insured," you need both: a COI (the document) AND an AI endorsement (the policy change). A COI alone does NOT make someone additional insured.
How to Get a COI Quickly
- Contact your agent with the certificate holder's name, address, and any specific requirements
- Provide contract requirements — limits, additional insured, waiver of subrogation, primary/non-contributory language
- Standard COIs can be issued same-day (often within hours)
- COIs requiring endorsements (AI, waiver of subrogation) may take 1-3 business days
- Plan ahead — don't wait until the day you need to start work
Common COI Mistakes
- Wrong certificate holder name: Must match the legal entity name in the contract exactly
- Missing additional insured: Contract requires AI but the COI only shows them as certificate holder
- Insufficient limits: Contract requires $2M/$4M but your policy is $1M/$2M
- Expired certificate: Sending last year's COI instead of getting a current one
- Wrong coverage types: Contract requires commercial auto but it's not listed on the COI
- Missing waiver of subrogation: Contract requires it but it's not endorsed on the policy
For Agents: COI Best Practices
- Review contract insurance requirements BEFORE the client signs
- Keep a certificate holder database and auto-issue renewals
- Use blanket additional insured and waiver of subrogation endorsements to speed up processing
- Verify every COI request matches what the policy actually provides
- Document everything — COI requests, endorsements, and contract requirements — for E&O protection