What's the Difference Between a COI and Liability Insurance?

A certificate of insurance (COI) provides proof that a person or business has insurance, whereas liability insurance is the actual policy that covers individuals or businesses if a person files a claim for injury, negligence, or property damage.

Why Do You Need Both Documents?

A COI is often important to furnish proof that a person or business is insured. This may be a basic requirement in order to provide certain services on someone else's property or complete a government project. In addition to a COI, it's often important to have documentation of the specific type of coverage, such as the limits for medical expenses, lost wages, or replacement of damaged property..

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What Information Is on a COI That's Not on Your Policy (Proof of Insurance vs. Policy)?

A COI provides official proof of insurance, whereas other policy documents may not offer sufficient evidence that a person or business is insured. A COI may also include a summary of the type of liability insurance and the name of the insurer, but it may not have all the terms, conditions, and limits that are on other insurance documents.

Can You Use Your Insurance Policy Instead of a COI (Insurance vs. Certificate)?

Many businesses specifically require a COI vs. liability insurance document as the only acceptable form of proof of insurance. Specific information from other policy documents may be helpful, but a COI is often a must-have to provide evidence of insurance.

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How Do You Get a Certificate of Insurance?

An insurer can often provide businesses with a COI as proof of insurance. Also, an insurance compliance platform, such as illumend, can help businesses request and track all their COIs for vendors and subcontractors.

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When Do Clients or Partners Ask for a COI?

Clients or partners may ask for a COI before agreeing to work together on a project. By asking for a COI before a project begins, clients and partners can often limit their liability in case of injury or property damage.

What If Your Insurance Doesn't Meet Their Requirements?

If your insurance doesn't meet specific requirements, you may be able to increase your coverage. Once you have an insurance policy in compliance with requirements, illumend can help you remain in compliance with contractual and regulatory insurance requirements.

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How Do You Track COIs If You're the One Requesting Them?

If you need to track multiple COIs, it may be easier to use the services of illumend, which tracks, verifies, and manages insurance compliance. illumend automates the tracking process and notifies you when specific COIs need to be renewed or updated.

If you're looking for support in finding out whether you are in compliance with contract requirements, illumend can help you ensure you have all required COIs and that they remain up-to-date. illumend can streamline this process, empowering you to focus on growing your business instead of dealing with insurance paperwork and claims. Take the first step toward getting support with your COIs and reach out to illumend today.