What Is a Certificate of Insurance? A Plain Guide
Karla, Founder · · 6 min read
What is a certificate of insurance? It’s a one-page document, issued by a business’s insurance agent or broker, that summarizes the business’s policies: the coverage types, insurers, policy dates, and limits in place on the day it was issued. In the US it is usually an ACORD 25 form. It is useful proof of coverage, but it is a summary, not the policy, and it does not make you an additional insured.
If you hire contractors, cleaners, or any vendor who works on your premises, sooner or later someone will tell you to “get their COI”. This short guide explains who issues one, why you ask for it, and where its limits are.
This article is general information, not legal or insurance advice. Check your contracts and talk to your insurance broker or attorney about your situation.
What is a certificate of insurance?
A certificate of insurance, or COI, is a one-page document that summarizes a business’s insurance policies. It shows that, on the day it was issued, the business had certain coverage in place with certain insurers, for certain dates, up to certain limits.
In the US, the most common version is the ACORD 25, a standard form published by ACORD, an insurance industry forms organization. Because almost every agent uses the same form, certificates from different vendors look alike, which makes them quicker to check.
Think of it like a receipt that says “this business has these policies”. It is useful proof, but it is a summary, not the policy.
Who issues a certificate of insurance?
The vendor’s insurance agent or broker issues it. The vendor asks their agent, the agent fills in the form with the details of the vendor’s policies, adds your name and address as the certificate holder, and sends it to the vendor or directly to you.
This matters for two reasons:
- Corrections go through the agent. If something on the certificate is wrong, the vendor usually cannot fix it themselves. Their agent has to issue a new one.
- The agent is your contact for questions. The agent’s name and contact details appear near the top of the form, in a section called “producer”.
Issuing a certificate is a routine request for an agent. If a vendor says it will take weeks, that is worth a follow-up question.
Why ask vendors for a certificate of insurance?
When a vendor works for you, things can go wrong. A painter’s ladder falls and damages a tenant’s car. A plumber’s employee is injured in your building. A delivery driver backs into your loading dock. In each case you want the vendor’s insurance to pay, not yours.
Asking for a certificate before work starts does a few things:
- It confirms the vendor has insurance at all. Some small vendors do not, or let it lapse.
- It lets you check the coverage matches your contract. The right types of coverage, high enough limits, current dates.
- It gives you a record. If a claim comes up later, you can show what coverage the vendor had when they did the work.
- It may be required of you. Your own contracts with property owners, general contractors, or customers often require you to collect certificates from the vendors you hire.
What is on a certificate of insurance?
You do not need to memorize the form, but it helps to know the main parts:
| Section | What it shows |
|---|---|
| Producer | The agent or broker who issued the certificate |
| Insured | The vendor whose policies are listed |
| Insurers affording coverage | The insurance companies behind each policy, lettered A to F |
| Coverages | Each type of insurance, its policy number, start and end dates, and limits |
| Description of operations | Free text, often naming a project or location |
| Certificate holder | You, the person or business who requested it |
| Cancellation | How notice of cancellation is handled |
The coverages most often listed are general liability, automobile liability, umbrella or excess liability, and workers compensation and employers’ liability. For a section-by-section walkthrough with what to check in each one, see how to read an ACORD 25.
What a certificate of insurance is not
A certificate of insurance is not the policy, not a guarantee that coverage is still active, and not additional insured status, and those three points are where people get caught out.
It is not the policy. The form itself says it is issued for information only, gives the certificate holder no rights, and does not change the coverage. The actual terms live in the policy.
It is not a guarantee the coverage is still active. It shows what was in place on the day it was issued. A policy can be cancelled or allowed to lapse afterward, and you may not be told. Each policy also has an expiration date, which is why certificates need to be tracked and renewed, not just filed.
It does not make you an additional insured. Being listed as the certificate holder only means you received the certificate. If your contract says you must be an additional insured on the vendor’s policy, that requires an endorsement to the policy. A checkmark or a sentence on the certificate is not enough. Ask for a copy of the endorsement and read it, or have your broker check it. This is a human step: tools that read certificates, CertiTrack included, do not verify endorsements for you.
What to do with certificates once you have them
Collecting one certificate is easy. Keeping certificates current for every vendor is the real work. Each policy expires, usually once a year, and the vendor has to send a new certificate each time.
The basics:
- Check each certificate against your contract when it arrives.
- Record the expiration date of every policy, not just one per vendor.
- Ask for the renewal well before the expiration date.
- Keep old certificates as a record.
The full process is covered in our guide to certificate of insurance tracking. If you would rather not do the date-watching by hand, CertiTrack reads the expiration dates from each certificate (you confirm them) and emails the vendor at 90, 60, 30, and 7 days before expiry, with a copy to your team. The Free plan covers up to 5 vendors; see pricing.
Frequently asked questions
How much does a certificate of insurance cost?
Usually nothing. Agents typically issue certificates as part of servicing the policy. The vendor pays for the insurance, not the certificate.
Can I ask a vendor for a certificate of insurance even if the contract does not require it?
Yes. It is a normal request, and most established vendors are used to it. Going forward, it is better to write insurance requirements into your contracts so the expectation is clear.
How long is a certificate of insurance valid?
It does not have its own expiration date. Each policy listed on it does. Once the earliest policy expires, the certificate no longer shows that coverage as current, and you need an updated one.
Do I need a certificate from a vendor who works remotely?
It depends on the risk. A remote consultant might not need general liability, but your contract could still require professional liability. Decide by the type of work, with your broker’s help.
CertiTrack keeps every vendor’s insurance, licenses, and renewal reminders in one place. Start free.
