What is a certificate of insurance for a company?
Asked by: Dax Bailey | Last update: July 1, 2025Score: 4.4/5 (26 votes)
What is the purpose of a certificate of insurance?
A COI is a statement of coverage issued by the company that insures your business. Usually no more than one page, a COI provides a summary of your business coverage. It serves as verification that your business is indeed insured. Potential clients may request a COI as a condition of doing business with you.
Who requires a certificate of insurance?
Depending on your role in relation to other businesses you work with, you may need a certificate of insurance. If you are a subcontractor, vendor, or any business performing services on another business' behalf, you will need to provide a COI.
Why do customers ask for a certificate of insurance?
Both businesses and individuals ask for certificates of insurance. They do so in order to verify that someone has an adequate amount of insurance coverage in place to protect their business and assets.
What if I don't have a certificate of insurance?
Without a COI, businesses may be reluctant to do business with you. That's because if something goes wrong and you don't have the proper insurance coverage in place, you could be held liable.
Certificate of Insurance | What Is It?
Does every company have a certificate of insurance?
Who Needs a Certificate of Insurance (COI)? Simply put, if you are hiring an independent contractor or business for their services on your property, you should require a certificate of insurance (COI). If you are a contractor or business, you should have a COI so you can prove to your clients that you are insured.
Where do I get my insurance certificate?
From your insurance company: Most insurers have physical offices you can visit. Talk to a representative who can guide you through getting car insurance and provide your certificate.
Why would a vendor request a coi?
COIs and AIs
Third parties typically request a COI to ensure a vendor has adequate insurance coverage before entering into a contract or allowing them to participate in an event. These third parties are known as Additional Insureds (AIs).
What type of information is not included in a certificate of insurance?
A certificate of insurance provides proof of coverage but does not include information about the cost of premiums. Specifically, details about filing claims, policy benefits, exclusions, and the duration of coverage are also not included.
Why do employers ask for proof of insurance?
In addition to a comprehensive policy, your personal auto insurance policy can act as a form of supplemental insurance. That way, you are completely covered in the event of an accident. Your employer also wants to make sure that you are adhering to the minimum coverage rules in California.
Can I issue my own certificate of insurance?
Insureds don't have the authority to issue their own certificates. The agent, under contract with the carrier, issues a COI on behalf of the insurer.
How long is a certificate of insurance valid?
The certificate of insurance is valid for as long as your policy is active. Once your policy expires, your certificate can only be used to prove that you had insurance coverage at a given period, but it doesn't help with future projects.
What is a sample certificate of insurance?
A certificate of insurance sample should include the name of the company providing evidence of the insurance policy, the identification number of the insurance policy, the type of insurance policy that is included, and the limits of the liability of the insurance policy.
Who asks for a certificate of insurance?
It may be requested by clients, banks, mortgage companies, or equipment leasing companies to ensure that the business has the necessary insurance for a project or property. There are many different types of ACORD certificates and forms.
How much does a certificate of insurance cost?
A certificate of insurance is free. Much like a receipt, the document is proof that the policyholder paid for the policy and has insurance. The cost of the policy depends on the type of insurance, your policy limits, and business factors, such as revenue and number of employees.
Who needs to provide coi?
Contract Execution: Once a contract is awarded, contractors typically need to provide a COI to the client or project owner as part of the contractual agreement. This ensures compliance with insurance-related provisions in the contract.
Who signs a certificate of insurance?
Certificate holder: entity for which the evidence of coverage is being provided. Producer's signature: signature of the Insurance Agent/Broker who issues certificates.
What does coi mean in business?
What Are Certificates of Insurance? A certificate of insurance (COI) is a document from an insurer to show you have business insurance. They're also known as certificates of liability insurance or proof of insurance. With a COI, your clients can make sure you have the right insurance before they start working with you.
Is a certificate of insurance legally binding?
Courts have generally held that certificates of insurance are not contracts and, therefore, not enforceable.
Why would a customer request a certificate of insurance?
They want to know you have the right coverage.
Your customer wants to ensure you have proper insurance coverage to protect against certain financial risks associated with the work. The certificate of insurance states the policy or policies you carry so your customer can see if you have sufficient coverage.
What does COI mean for vendors?
A Certificate of Insurance (COI) outlines how much coverage a potential third-party vendor's policy provides up to a specific dollar amount, along with the types of incidents that are covered, the effective date, and the expiration date.
Why is a coi important?
At its core, the purpose of a COI is to provide documented evidence that a vendor has insurance coverage in place. COIs allow you to verify your vendors' type of coverage, policy limits, and effective dates, ensuring their compliance with your requirements and contractual obligations. They help mitigate your liability.
What does an insurance certificate do?
A certificate of insurance is a document that defines the coverage provided by the insurance carrier to an insured person or business. Certificates of insurance are issued for many types of coverage, including health insurance, disability insurance, life insurance, auto liability insurance, workers' compensation, etc.
How to find a certificate of insurance?
Call your broker, explain to them what the minimum coverage amount is and that you need proof of insurance. If your policy already meets the requirements, then the broker will contact your carrier to secure the COI.
How hard is it to get a certificate of insurance?
Obtaining a COI from a third party should not be too difficult a task on your end, as they'll be the ones taking the steps above. To ask for a COI, you can generally send the party you're wanting to work with a certificate of insurance request letter or email or even ask them in person if you'd like.