A Certificate of Insurance (COI) is a summarized proof of an insurance policy. It is issued by your insurance company or broker and confirms that a valid policy exists. This document condenses the most important details of a policy into a one-page format that is easy to read.
Businesses, contractors, and clients often use a COI to verify insurance coverage before signing contracts or starting projects. It acts as a quick reference instead of reading through dozens of pages of policy language.
What Information Does a COI Contain?
A standard certificate of insurance typically includes:
Field | Description |
---|---|
Policyholder’s Name | The insured person or company |
Insurance Carrier | The insurer providing coverage |
Policy Number | Unique identifier for the policy |
Coverage Types | Liability, property, auto, workers’ compensation |
Coverage Limits | Maximum payout amounts |
Deductibles | Amount the insured pays before coverage starts |
Effective Date | Date the policy begins |
Expiration Date | Date coverage ends |
Additional Insureds | Other parties listed for protection |
Insurer Contact | Phone or email for verification |
Depending on your policy type, it might also include endorsement details, exclusions, and special conditions.
How Does a Certificate of Insurance Work?
A COI serves as immediate proof of insurance in situations where liability concerns are high. For example:
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A contractor bidding on a construction job provides a COI to show they have liability coverage for property damage and injuries.
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An event organizer requires vendors to provide COIs before allowing them to set up booths.
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A property owner requests a COI before leasing commercial space to ensure the tenant has insurance.
Without a COI, many businesses cannot secure contracts because clients are unwilling to risk hiring uninsured vendors.
Why Do Businesses and Contractors Need a COI?
There are three main reasons:
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Proof of Insurance Status
Clients want reassurance that your insurance is active. If an accident happens, liability insurance covers damages instead of the client paying out-of-pocket. -
Risk Management
A COI helps clients evaluate whether your coverage meets their risk requirements. -
Simplified Policy Reference
Reading a full policy can take hours. A COI offers all the critical facts in under a minute.
Examples of When a COI Is Required
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Hiring subcontractors for a building project
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Renting equipment from a supplier
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Signing a service contract with a corporate client
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Hosting an event at a rented venue
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Transporting goods for a third party
In all these cases, the party hiring you wants financial protection in case of injuries, damage, or negligence.
Is a COI the Same as an Insurance Policy?
No.
A COI is a summary, not the contract itself. It shows policy details valid on the issue date but does not guarantee future coverage.
If a policy is canceled the day after a COI is issued, the document won’t reflect that change unless updated. This is why clients often request the most recent COI before work begins.
How to Obtain a Certificate of Insurance
If You Are the Policyholder
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Contact your insurance agent or broker directly.
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Provide the details of the requesting party if they need to be listed as an additional insured.
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Request an updated COI whenever coverage changes.
If You Are Hiring Someone
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Request the COI from their insurer, not just from the contractor.
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Verify all details match the contract requirements.
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Ensure coverage dates extend through the project timeline.
Checklist for Verifying a COI
When reviewing a certificate of insurance, check:
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The policyholder’s name matches the company or person you are hiring.
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The policy number is valid.
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The insurer is licensed and reputable.
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Coverage limits meet contractual requirements.
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The policy will not expire before project completion.
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Additional insureds are correctly listed.
Common Types of Insurance Shown on a COI
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General Liability Insurance – Covers third-party bodily injury and property damage.
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Workers’ Compensation – Protects employees and meets legal requirements.
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Commercial Auto Insurance – Covers company vehicles used for work.
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Professional Liability (Errors & Omissions) – Covers mistakes in professional services.
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Property Insurance – Protects buildings and equipment from fire, theft, or damage.
Why an Updated COI Is Essential
Insurance coverage can change at any time due to:
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Non-payment of premiums
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Changes in business operations
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Policy cancellations or renewals
That’s why you should request the COI as close to the contract start date as possible.
COI Best Practices for Business Owners
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Keep digital and printed copies of your COIs for quick access.
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Review your coverage annually to ensure limits meet industry standards.
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Always send a fresh COI when bidding for new work.
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Ask vendors and subcontractors for updated COIs before allowing them to start.
Why Choose Matrix Insurance for Your COI Needs
Matrix Insurance provides fast COI issuance for new and existing policies. Whether you’re a small business owner, contractor, or vendor, we ensure your certificate meets client requirements.
You can request:
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A new COI upon purchasing coverage
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A revised COI if project details change
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Multiple copies for different clients
📞 Call (706) 310-0000 to get your certificate or update your policy today.