A certificate of insurance is a one-page document that proves your business has active coverage. It's not the policy itself. It doesn't create or modify coverage. It summarises what's in place at the time it's issued.
Most businesses encounter COIs in one of two ways: someone asks you for one before they'll sign a contract or hand over keys, or you're the one requesting proof that a subcontractor, vendor, or tenant is properly insured. This guide covers both sides.
COI Explained: What the Document Actually Is
A COI is a summary of your insurance policy, not a substitute for it. The document confirms the carrier, coverage types, limits, policy numbers, and effective dates. That's it.
The standard form used across the US insurance industry is the ACORD 25, developed by the Association for Cooperative Operations Research and Development. Most COIs you'll encounter follow this format. It's one page, and every field has a specific meaning.
One thing the ACORD 25 makes clear in its own disclaimer language: the certificate is informational. It doesn't amend, extend, or alter the coverage described. If there's a dispute about what's covered, the policy document controls, not the COI.
How to Read a Certificate of Insurance
The ACORD 25 is structured in sections. Here's what each one tells you:
| Section | What It Contains | What to Check |
|---|---|---|
| Producer | The broker or agent who issued the COI | Contact details if you have questions |
| Named insured | The business that holds the policy | Must match the legal entity in your contract exactly |
| Insurer(s) | The carrier(s) providing coverage | Look for AM Best-rated carriers |
| Coverage types | GL, workers comp, auto, umbrella | Confirm the right coverage types are present |
| Policy numbers | Unique ID for each policy | Verify these match the actual policy if needed |
| Effective/expiration dates | When coverage starts and ends | Check dates cover your full project or contract term |
| Limits | Per-occurrence and aggregate | Confirm limits meet your contractual minimum |
| Description of operations | Additional insured, project details, endorsements | Read this section carefully, it's where the specifics live |
| Certificate holder | The party who requested the COI | Should be your business name and address, spelled correctly |
| Cancellation notice | How much notice the carrier gives before cancelling | 30 days is standard; some contracts require more |
The description of operations section is the one most people skip and shouldn't. It's where additional insured language, project-specific wording, and endorsement references appear. If your contract requires you to be named as an additional insured, that language must appear here, not just a checked box.
Certificate of Insurance Requirements: What's Usually Asked For
What a COI needs to show depends on who's asking. Common requirements include:
- Minimum coverage limits (often $1M per occurrence / $2M aggregate for GL)
- Specific coverage types (GL almost always, workers comp in most cases, commercial auto if vehicles are involved)
- Additional insured status naming the requesting party
- Waiver of subrogation, preventing the carrier from pursuing the certificate holder after a claim
- 30-day cancellation notice
Different situations call for different requirements:
- Commercial leases: landlord typically requires GL and sometimes commercial property, named as additional insured
- Client contracts: professional services and contractors often need GL plus professional liability or workers comp
- Government contracts: tend to require higher limits and more specific endorsements
- Subcontractor onboarding: GCs typically require GL, workers comp, and additional insured status before work begins
If someone sends you a COI to review and the limits are below what your contract requires, don't accept it. A COI that doesn't meet your requirements offers no protection in a claim scenario.
Additional Insured Status: Certificate Holder vs. Additional Insured
This is the most misunderstood part of a COI. Being listed as the certificate holder and being listed as an additional insured are not the same thing.
The certificate holder is simply the party that requested the COI. They receive a copy. They have no coverage rights under the policy.
An additional insured is a party that has been added to the named insured's general liability coverage by endorsement. They receive actual protection under the policy for claims arising from the named insured's operations.
To be properly added as an additional insured:
- The named insured must request an endorsement from their carrier
- The carrier adds the endorsement to the policy
- The COI is reissued reflecting that status in the description of operations section
A checked "ADDL INSD" box alone isn't enough. If the description of operations section doesn't explicitly name you and reference the endorsement, the status may not be in place. Request the actual endorsement form if the contract requires it.
How to Get a COI
If you have an active policy, your broker can issue a COI on request. The process is straightforward:
- Contact your broker with the certificate holder's name and address
- Confirm any additional requirements (additional insured language, minimum limits, specific endorsements)
- Broker issues the COI, typically same day for standard requests
- Deliver the COI to the requesting party before work begins
At Rosella, we issue certificates of insurance in under two minutes, around the clock. If you need a COI at 11pm before a job starts at 7am, that's not a problem.
If you don't have an active policy yet, you need the policy in place before a COI can be issued. A COI can only report coverage that exists. The one exception is an insurance binder, which provides temporary proof of coverage while the policy is being finalised.
Need a COI Issued Today?
If a client, landlord, or GC is asking for proof of coverage, we can have a certificate in their inbox fast. Request an insurance quote or speak to our team and we'll sort the COI alongside getting your coverage in place.
