What Is an Insurance Certificate (COI)?
Uncover the essentials of an insurance certificate (COI). Learn its role, how to obtain proof of coverage, and confidently utilize this key document.
A Certificate of Insurance (COI) is a document issued by an insurance company or broker that provides evidence of an existing insurance policy. It serves as a summary of key coverage details, confirming that an individual or business has specific insurance in place. A COI offers a concise, one-page snapshot of essential insurance information, acting as proof of insurance.
Components and Purpose of an Insurance Certificate
A Certificate of Insurance includes several key pieces of information. It lists the insured’s name and contact information, along with the insurer’s name and contact details. The document specifies the policy number(s) and indicates the types of coverage provided, such as general liability, automobile, or workers’ compensation. Policy effective and expiration dates are clearly stated, showing the period during which the coverage is active.
The COI also details policy limits, which represent the maximum amount the insurer will pay for covered losses. It identifies the certificate holder, the entity requesting the COI, including their name and address. A COI can include details about additional insureds, extending some of the policyholder’s coverage to another person or organization.
A waiver of subrogation, if applicable, is another important element. These certificates are commonly used to provide proof of coverage to third parties like clients, landlords, or contractors, meeting contractual obligations and facilitating business relationships by demonstrating financial responsibility.
Requesting an Insurance Certificate
Obtaining an insurance certificate involves contacting the policyholder’s insurance agent or broker. The process is generally free of charge once a policy is in place. To request a COI, the insured party needs to provide specific details to their agent.
This information includes their own policy number(s) and the full legal name and address of the entity requesting the COI, known as the certificate holder. It is important to state the reason for the request, such as a specific contract, project, or lease agreement. Any special requirements, like specific coverage limits, the need for additional insured endorsements, or a waiver of subrogation, must be communicated clearly.
Interpreting and Utilizing an Insurance Certificate
Once an insurance certificate is received, it is important to carefully review its contents to ensure it meets all required specifications. Check the policy coverage dates, confirming that the effective date is current and the expiration date extends through the required period of the contract or project. Verify that the listed policy limits align with the agreed-upon amounts and that the correct types of coverage are included. Confirm that all listed parties, including the insured and any additional insureds, are accurately named.
To verify the authenticity and current validity of a certificate, the most reliable method is to directly contact the insurance provider or agent listed on the document. Independently confirming the policy’s active status and details with the issuer helps guard against fraudulent or inaccurate documents. If any discrepancies are found, such as incorrect coverage or insufficient limits, immediate communication with the party that provided the certificate is necessary to rectify the issues. This diligent review and verification process ensures that the certificate accurately reflects the necessary coverage, fulfilling contractual obligations and helping to mitigate potential risks.