Understanding Certificates of Insurance (COIs)

A Certificate of Insurance (COI) is an official document that provides proof that a business or individual holds active insurance coverage. Think of it as a one-page summary of your insurance “resume.” Instead of reviewing long policies and endorsements, a COI presents the essential details in a concise and easy-to-read format.

Key information included in a COI:

• Types of coverage (such as General Liability or Workers’ Compensation)
• Coverage limits for each policy
• Insurance company name
• Policy number
• Named insured
• Additional insured(s)
• Effective and expiration dates

Does a COI Provide Coverage?
No. A COI does not provide insurance coverage itself. It is simply a document that verifies the existence of an insurance policy. Only the actual policy and endorsements define what is covered.

Why Are Certificates of Insurance Important?
Clients, contractors, or vendors often request a COI before you begin work. They want confirmation that your coverage meets their contractual requirements. Providing a COI shows:

• Proof for contracting parties – shows you have the required insurance.
• Simplified paperwork – provides only the necessary details.
• Risk management – helps others avoid liability if an incident occurs.

Additional Insureds: What You Should Know
Sometimes, a COI will show an additional insured. This means another party benefits from your policy. While this can help secure contracts, it can reduce your available limits if a claim is filed. Always review the impact of adding additional insureds before agreeing.

Best Practices
When it comes to managing COIs, following a few key best practices can help ensure clarity, compliance, and proper documentation. Below are a few tips to keep in mind:

1. Verify the contract’s exact insurance requirements.
2. Use clear language when sending COIs to non-insurance professionals.
3. Request endorsements if you need to confirm additional insurance requirements.
4. Keep copies of all COIs sent or received.

TSIB Can Help
At TSIB, we understand that insurance requirements can feel complicated — but they don’t have to be. Whether you need help understanding Certificates of Insurance, managing risk on your projects, or ensuring you meet client contract requirements, our team is here to guide you.

Ready to make insurance simpler? Connect with TSIB today to discuss your coverage needs and protect your business with confidence.

TSIB’s Risk Consultants are currently servicing the following locations:
East Coast: New York City, NY; Bergen County, NJ; Fairfield County, CT; Philadelphia, PA
Texas: Austin, San Antonio, Houston, Dallas
California: Orange County, Los Angeles County, Riverside County, San Bernardino County, San Diego County

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