If you’ve ever signed a commercial lease, entered into a vendor agreement, or bid on a government contract, you’ve probably been asked to provide a certificate of insurance. Understanding what a COI is — and what it isn’t — is essential for protecting your business.
What Is a Certificate of Insurance?
A certificate of insurance (COI) is a document issued by your insurance broker or carrier that summarizes your current insurance coverage. It typically lists your carrier, policy numbers, effective dates, policy limits, and named insureds. A COI is not the insurance policy itself — it’s a snapshot of your coverage at a point in time, used to demonstrate to third parties that you carry the required coverage.
Additional Insured Endorsements
Many contracts require that you add the other party as an additional insured on your general liability policy — meaning they receive some of the protections of your policy if a claim arises from your operations. An additional insured endorsement must actually be added to your policy; simply listing someone on a COI without the corresponding endorsement creates a false impression of coverage. Always confirm with your broker that endorsements are in place, not just listed on a certificate.
Common COI Requirements
Landlords typically require general liability, commercial property, and workers’ compensation coverage with specific minimum limits. General contractors require GL and workers’ comp from all subcontractors. Retailers and distributors require product liability coverage from their vendors. Government contracts often specify additional requirements including professional liability, cyber liability, and higher umbrella limits. Understanding your contractual insurance requirements before signing is essential.
COI Management for Growing Businesses
As your business grows and takes on more clients and contracts, managing COI requests can become time-consuming. Many clients require updated certificates at each policy renewal, and the requirements from different clients may vary. Working with a responsive broker who can issue certificates quickly and accurately is critical — a delay in providing a COI can delay a project start or jeopardize a contract.
Bozzuto Group Makes COI Management Easy
Bozzuto Group handles COI requests efficiently and accurately for all of our clients. We review your contractual insurance requirements, ensure your policies meet them, and issue certificates promptly. Contact us to learn how we can streamline your insurance certificate management.