What is a certificate of insurance?
A certificate of insurance is a summary of your business insurance on a single page, issued by your insurer or agent. It shows the policies you carry, their limits, and their dates. Homeowners, property managers, and general contractors ask for one to make sure an accident on their job will not land on them.
Most contractor COIs use the ACORD 25 form, the industry standard for liability certificates. A certificate is informational only: it proves coverage on the day it was issued but does not change the policy itself.
What a contractor COI shows
Producer
The agent or insurer that issued the certificate. Call this contact to confirm a COI is real.
Insured
Your business's legal name and address. It should match your contract exactly.
Insurers affecting coverage
Each insurance company behind the policies listed, often with its NAIC number.
Coverages and policy numbers
General liability, auto, umbrella, workers comp, and any others, each with its policy number.
Effective and expiration dates
The policy period. A certificate for an expired policy proves nothing.
Limits
Per-occurrence and aggregate limits for each policy, and statutory limits for workers comp.
Additional insured and waiver boxes
Marks showing whether a client is added as additional insured or has a waiver of subrogation.
Description of operations
Free text that often names the project, location, or contract the certificate relates to.
Certificate holder
The client, GC, or property manager who asked for proof. Being listed here alone gives them no coverage.
How to get a certificate of insurance
Buy the coverage the job asks for
Check the contract first. Most require general liability at $1 million per occurrence, and many require workers comp and commercial auto.
Request the certificate from your insurer or agent
Digital insurers often let you download one instantly. With an agent, send the client's legal name, address, and any wording the contract requires.
Add endorsements if the contract calls for them
Additional insured, waiver of subrogation, and pay-first (non-contributory) wording all need endorsements on the policy, not just boxes on the form.
Send it before you start
Email the COI to the certificate holder and keep a copy. Renewals mean new certificates, so send updated ones each policy year.
Additional insured vs certificate holder
This is the mix-up that causes the most trouble on job sites. A certificate holder only receives proof that you are insured. An additional insured is added to your policy by endorsement, which lets them claim under your general liability if your work leads to a lawsuit against them.
GCs and commercial property owners usually require additional insured status. Many insurers offer a blanket additional insured endorsement that covers any client who requires it in a written contract, which saves you from requesting one per job.
How to check a subcontractor's COI
If you hire subs, their certificates protect you twice: from claims their work causes, and from your own insurer charging you for their payroll at audit. Check every certificate for these:
- The insured name matches the business you are hiring
- Policies are active for the full length of the job
- Limits meet or beat what your own contract requires
- Workers comp is listed, or you hold a valid state exemption
- You are listed as additional insured if your contract requires it
- The producer confirms the policy when you call them directly
Missing a sub's COI can raise your own premium. See how to keep contractor insurance cheap for more on audits.