A certificate of insurance (COI) is a standardized one-page document that proves a business currently carries insurance. It lists the policy types, limits, and effective dates, names the insured, and names the party it was issued to. A COI is proof of coverage - it does not itself provide, change, or extend coverage.
What does a certificate of insurance show?
A COI lists the insurer and producer, the insured business, the coverage types in force (general liability, auto, workers compensation, umbrella), each policy's limits and effective and expiration dates, and the "certificate holder" - the party requesting proof of coverage.
What is the standard form?
Most certificates of insurance use the ACORD 25 form, the ACORD "Certificate of Liability Insurance." ACORD is the property and casualty industry's standards body, and its ACORD 25 template is what issuers use so a certificate reads the same way regardless of which insurer or agency produced it.
What a certificate of insurance does not do
A COI is informational only. It confirms coverage existed on the date it was issued. It does not make the certificate holder an insured, does not guarantee the policy is still in force later, and does not amend the policy. Being named as an additional insured is a separate policy endorsement, and that is what actually extends coverage to another party - being listed as a certificate holder is not the same thing. See the difference between a COI and additional insured status for the applied comparison.
Who asks for a certificate of insurance, and why?
Landlords ask for one before a lease starts. General contractors ask subcontractors for one before work begins on a job site. Clients ask for one before signing a services contract. Venues and licensing boards ask for one as a condition of use or licensure. Each party wants proof that the other side can cover a loss it might otherwise get pulled into.
For example, a general contractor will not let a subcontractor start work on site until the sub sends a COI showing at least $1,000,000 in general liability coverage. The certificate proves the coverage exists. If the contract also requires the sub to name the general contractor as an additional insured, that is a separate policy endorsement - the certificate alone does not do it.
A business that regularly needs to produce a certificate of insurance for landlords, clients, or general contractors can confirm current limits are adequate through commercial insurance and request a certificate through a coverage review.