What Is a Certificate of Insurance (COI)?

A Certificate of Insurance (COI) is a document issued by an insurance company or broker that confirms the existence of an insurance policy. It provides proof of coverage without detailing every aspect of the full insurance contract.

Understanding the Certificate of Insurance

A Certificate of Insurance functions as a concise summary of an insurance policy, outlining its essential details. Businesses frequently use COIs to demonstrate their insurance status, particularly when engaging in new contracts, partnerships, or when hiring contractors. Its purpose is to provide quick access to coverage information, assuring third parties that adequate protection is in place for potential risks or liabilities. This document is often a requirement for contractual obligations, risk management protocols, and regulatory compliance.

It is important to understand that a COI is not the insurance policy itself, but rather a snapshot of the policy at a specific point in time. While the full insurance policy is a comprehensive legal contract detailing all terms, conditions, and exclusions, the COI condenses this information for easy verification. This distinction is important because the COI does not confer any rights or coverage beyond what is stated in the actual policy.

Key Information on a Certificate of Insurance

A standard Certificate of Insurance includes specific information to verify coverage details. It identifies the insured’s name and mailing address. It also lists the name and contact information of the insurance company providing the coverage, along with the producer (broker or agent) who issued the certificate.

The COI specifies the policy number or numbers associated with the coverage, along with the types of insurance provided. Common types of coverage include General Liability, Workers’ Compensation, and Auto Liability. The certificate details the policy’s effective and expiration dates.

The document outlines the coverage limits, which represent the maximum amount the insurance company will pay for a covered loss. The certificate holder’s name and address, which is the entity requesting the COI, are also included. If applicable, the COI will note if any additional insureds are covered under the policy or if a waiver of subrogation has been granted. A description of operations box allows for extra details about the location, event, or specific project.

Requesting and Verifying a Certificate of Insurance

An insured party can request a Certificate of Insurance from their insurance broker or carrier. This involves contacting the insurance provider, often through phone, email, or an online portal. When requesting, the insured provides the policy number, their name, and the policy’s effective coverage dates. The insured also specifies the certificate holder’s name and address, along with any specific coverage requirements, such as minimum limits or additional insured status.

For a party receiving a COI, verifying its authenticity and accuracy is an important step. The most reliable method for verification is to directly contact the insurance company or broker listed on the certificate. This allows for confirmation that the policy is active and that the details on the COI match the insurer’s records. It is advisable to compare the policy dates and coverage limits on the certificate against any contractual requirements to ensure alignment.

When reviewing a COI, check for consistent formatting, such as uniform fonts and the absence of obvious alterations or faded appearances, as these could indicate a fraudulent document. Most legitimate COIs are issued on standardized forms, such as the ACORD 25 form, which helps in quickly identifying key information. Verifying the accuracy of the producer and insured information, and ensuring the insurance company is legitimate and verifiable, are also important considerations.