What is a Certificate of Insurance and when do I need one?

A certificate of insurance, often called a COI, is a one-page document that confirms you carry insurance and summarizes your coverage. It lists your insurer, policy numbers, types of coverage, limits, and policy dates. Clients, landlords, vendors, and government agencies routinely require one before allowing a contractor or business to start work or enter a contract.

What does a certificate of insurance actually show?

A COI is not the insurance policy itself. It is a snapshot, issued by your insurer or agent, that confirms coverage was in place as of the date shown. It commonly reflects general liability and workers compensation lines, though it can summarize any policy you carry. Many contracts will not move forward until a valid COI is on file. Which businesses qualify for a business owners policy explains how packaged and standalone coverage compare, which affects what lines appear on a COI.

When do businesses typically need a certificate of insurance?

For example, a Johns Creek office building hires a small cleaning company. Before allowing the crew onto the property, the property manager requires a certificate of insurance showing at least $1 million in general liability coverage. The cleaning company asks its agent to issue the COI, and only then is the contract signed and work allowed to begin.

Certificates are also commonly required when bidding on government contracts, leasing commercial space, or working as a subcontractor. The requesting party typically specifies both the coverage type and the minimum limits required. If current limits fall short of what a contract demands, the policy needs to be updated before a COI reflecting higher limits can be issued.

What is the difference between a COI and an additional insured endorsement?

A COI proves coverage exists. An additional insured endorsement goes further by extending certain coverage under your policy to a named third party. For example, a general contractor who requires a subcontractor to name the GC as an additional insured needs a formal endorsement from the subcontractor’s insurer, not just a certificate that lists the GC’s name. A COI alone gives the requesting party no coverage rights under your policy. The difference between a carrier and an independent agent explains who actually issues the COI and processes endorsement requests.

How quickly can a certificate of insurance be issued?

Certificates are typically produced within one business day and at no charge once the underlying policy is active. The coverage and limits must already meet what the contract requires, though. If a client demands $2 million in general liability and the current aggregate limit is $1 million, a COI cannot close that gap; the policy itself must be updated first. A free coverage review confirms whether your limits align with your contracts before a certificate is needed on short notice. Request a review and an agent can issue the COI and handle any endorsements required.