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A certificate of insurance (COI) is a one-page document, usually an ACORD 25, that proves a person or business holds the insurance coverage they claim. It shows who issued the policy, what types of coverage are in place, the limits, and the dates the coverage is active. Businesses ask vendors, contractors and other third-party partners for a COI before work starts so they don’t end up paying for someone else’s mistake.
Key Takeaways
- Only an insurer, agent or broker can issue a valid COI. You request one from the party whose coverage you need proof of.
- A COI is information only. It confers no rights on the certificate holder and does not amend, extend or alter the coverage of the actual policy.
- Being listed on a COI does not create coverage. Additional insured status comes from a policy endorsement. A certificate holder only receives proof.
- ACORD 75 is an insurance binder, not a COI. It is temporary evidence of coverage until the policy is issued.
- Verification and tracking matter as much as collection. Confirm dates, limits and endorsements, and keep certificates current so coverage never lapses.
What Is a Certificate of Insurance (COI)?
A certificate of insurance provides a clear snapshot of a vendor’s active insurance coverage. It outlines the insurance company issuing the policy, the policy limits, effective dates, and the type of liability insurance in place, such as general liability. By reviewing a certificate of insurance, you can confirm that work performed on your site is backed by appropriate coverage.
A standard COI also lists the insurance agent, NAIC numbers, and any endorsements tied to the policy, including additional insured status.
A COI is issued as a matter of information only. The certificate reflects coverage. It does not create or change it. The underlying policy and its endorsements are always the controlling documents.
What Is the Purpose of the COI?
Its purpose is to:
- Give you proof of the vendor’s active insurance coverage
- Show the coverage types, limits, and policy dates
- Check if you’re listed as the certificate holder or as an additional insured
- Confirm the vendor’s coverage meets your project needs
- Help you spot any missing or expired coverage
- Reduce financial and legal risk
- Create a record you can rely on for audits or internal reviews
To learn more about how to read a certificate of insurance (COI), read our complete guide.
Why Do Businesses Need Certificates of Insurance?
Asking for a COI is how you check that the right coverage is in place before any work starts. It shows that the vendor meets your contract’s insurance requirements, so you avoid paying for someone else’s mistake.
Many industries and contracts also set minimum coverage levels. If a third-party partner you hire falls short, your company can be the one held accountable. Their coverage should be strong enough that their insurance responds to a claim instead of yours.
8 Common Scenarios Requiring a COI
- Hiring contractors or vendors to perform work on your property, such as construction, maintenance, repairs, or professional services
- Working with subcontractors on active job sites who must carry general liability insurance and workers’ compensation coverage
- Hosting events, conferences, or on-site activities that require proof of event liability coverage from vendors, performers, or service providers
- Leasing or renting commercial space where landlords require tenants to show liability coverage
- Engaging third-party service providers who access sensitive areas, equipment, or customer data
- Partnering with vendors under formal contracts that specify insurance requirements, coverage limits, or additional insured status
- Working with transportation, logistics, or delivery providers that operate vehicles on your behalf and must show auto liability coverage
- Onboarding new vendors or renewing vendor agreements as part of ongoing compliance and risk management
When Should You Ask for a COI?
As early as possible, and always before work begins. Claims can arise from the moment a service provider starts work, and you need time to confirm the certificate meets your requirements. You can ask before a vendor bids, during onboarding, or right after you hire them. Ask for a COI when:
- You bring on contractors or service providers (see our guide to the certificate of insurance for contractors)
- Any work happens on your property or site
- Vendors deal with people at events, exhibitions, or conferences
- Vendors make deliveries, run shuttles, or transport equipment using vehicles, which calls for auto liability insurance
- A venue wants to see proof of business insurance coverage before they confirm your booking
- Your contract spells out the insurance you need, including policy limits, additional insured wording, required endorsements, or a waiver of subrogation
Do I Need a COI for My LLC?
You should have a COI ready if your LLC serves clients, enters job sites, touches equipment, or offers risky services. It helps you avoid losing contracts, delaying projects, or facing personal liability if something goes wrong. Most LLCs need a COI when:
- Beginning to work with a new customer
- Signing vendor or service contracts
- Working onsite at offices, warehouses, venues, or event locations
- Hiring subcontractors
What Information Is on a Certificate of Insurance?
A standard certificate of insurance typically includes:
- The named insured’s name and business information
- Insurance company names and NAIC numbers
- Policy numbers
- Types of coverage, like general liability, auto liability, workers’ compensation, or umbrella liability
- Policy limits, showing how much coverage is in place
- Policy effective and expiration dates
- The certificate holder’s information
- Additional insured status or waiver of subrogation
Who Should the Certificate Holder Be?
The certificate holder is the party requesting proof of coverage. It is usually the person who manages insurance compliance for your company. If no one holds that role, use the person most closely involved in hiring the vendor.
What's the Difference Between a COI and an Insurance Policy?
| Certificate of Insurance (COI) | Insurance Policy |
|---|---|
| A quick snapshot of a vendor’s insurance | The complete legally obligatory insurance contract |
| Displays coverage limits, policy types, dates, and endorsements | Explains terms, conditions, exclusions, and responsibilities |
| Easy to review and share with clients or venues | Informative, detailed, and only held by the policyholder |
| Helps confirm a vendor meets requirements before work begins | Defines what the insurer will and won’t cover if issues arise |
| Confirms the vendor is insured at the moment the COI is issued | Provides the actual protection the vendor relies on |
Is a COI the Same as a Declarations Page?
No. A declarations page is issued to the policyholder by their insurer and summarizes the policy, including coverage types, limits, deductibles, and endorsements. A COI is issued at the policyholder’s request as proof of coverage for an outside party, like you.
What Is an Additional Insured on a COI?
An additional insured endorsement extends a policyholder’s coverage to another party, often the business that hired them. Hiring businesses commonly ask contractors to add them so they are also protected if something goes wrong on the job.
Additional insured status comes from an endorsement issued by the insurer, not from being named on the certificate. If the policy has not been endorsed to add you, the coverage does not exist, no matter what the certificate appears to show. That is why reviewing the actual additional insured endorsements matters more than the box checked on the certificate.
How Do You Request a Certificate of Insurance from a Vendor?
Clear requests cut down on back-and-forth. Here’s how to request a COI:
- Let the vendor know you require a COI
- Share the coverage types and limits you expect
- Tell the vendor where and when to send the COI
- List any extra requirements, like additional insured wording or a waiver of subrogation
- Review the document to confirm the coverage details match what was agreed upon
- Follow up if anything is missing or unclear
How Does a Vendor Get a COI, and How Long Does It Take?
The vendor contacts their insurance agent, broker, or online insurance portal and asks for a certificate naming you as the certificate holder. The insurer generates the COI and sends it to the vendor or directly to you. Many COIs arrive within a few days, but some take a few weeks, so ask well before work begins. There is no charge for the certificate itself. For the step-by-step process, see how to get a certificate of insurance in the USA.
Can I Fill Out My Own COI?
No. A COI must always be issued by an insurance provider, agent, or broker. They’re the only ones authorized to verify coverage and list details like policy limits, endorsements, and additional insured status. ACORD publishes blank forms, but a certificate you create or edit yourself is invalid and can put you and your business at legal risk.
Common ACORD Certificate Forms
ACORD (the Association for Cooperative Operations Research and Development) is a nonprofit, founded in 1970, that publishes the standardized forms most insurers use. You can browse them in the ACORD forms portal.
- ACORD 25, Certificate of Liability Insurance. The most common COI. It certifies general liability and other liability coverage.
- ACORD 23, Vehicle or Equipment Certificate of Insurance. Shows coverage for leased or financed vehicles and equipment.
- ACORD 27, Evidence of Property Insurance. Proves property coverage, often requested by mortgagees or landlords.
- ACORD 75, Insurance Binder. Not a COI. It is temporary evidence of coverage until the policy is issued. Follow up for the actual certificate once it is.
How Do You Verify a COI?
Once you have a COI, confirm that it:
- Was issued by a legitimate insurance company
- Names the vendor you actually hired
- Shows the coverage types, limits, and dates you required
- Includes the endorsements you asked for, such as additional insured or waiver of subrogation
- Hasn’t been edited, which is a known risk with PDF certificates
When in doubt, confirm the details with the issuing agent. Keep COIs on file even after a policy expires. A common rule of thumb is five years after the work ends, in case a claim surfaces later.
How Do You Track COIs?
Receiving a COI is not the last step. A solid tracking process looks like this:
- Collection. Collect COIs from every vendor, contractor, and subcontractor before they begin a job.
- Storage. Keep all COIs in a secure, centralized system.
- Verification. Check every certificate against the requirements you set.
- Correction. If something doesn’t meet your requirements, contact the vendor or their insurer to fix it.
- Maintenance. Policies expire and vendors switch insurers. Follow up before expiration so coverage never lapses.
Manual tracking is prone to data-entry errors and gets harder as your vendor list grows. That is why many teams move to certificate of insurance tracking software. Our guide to the best COI tracking software compares the options.
How Can illumend, from myCOI, Make COI Management Easier?
Managing COIs can quickly become overwhelming due to different vendors, varying coverage requirements, and renewal dates that are easy to miss. illumend takes the pressure off by organizing the entire process for you.
With one-click vendor invites, vendors know exactly what insurance you need and where to send their COIs. Lumie, illumend’s AI, reads every certificate, checks the coverage against your contract requirements, and tells your third-party partners in clear terms what is missing. With the Core plan, Lumie also reviews endorsements and other insurance documents.
Want to see it in your workflow? Schedule a demo and we’ll show you how illumend fits.
