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What Is A Certificate of Insurance (COI): A Complete Guide
If you’ve ever been asked to collect a COI from a contractor or vendor and felt a moment of hesitation, you’re in good company. Many business owners and project managers worry they’ll sound demanding or inexperienced when they bring up insurance paperwork. Requesting a COI is a regular part of protecting your business, and vendors expect the conversation.
A Certificate of Insurance gives you confidence that the vendor has the coverage they need, so you’re not left carrying risks or costs that never belonged to you.
In this guide, we’ll walk through what a COI is, why it plays an essential role in your projects, when to request one, and how illumend, powered by myCOI, empowers you to stay on top of COIs much more easily.
What Is a Certificate of Insurance (COI)?
A Certificate of Insurance (COI) gives you a snapshot of an active vendor’s insurance coverage. It shows you the policy limits, dates, and the protection they carry. So, you know the work done on your site is backed by active insurance.
A standard COI lists the insurance agent providing adequate insurance coverage, their NAIC numbers, and any endorsements tied to the policy, including additional insured status.
What Is the Purpose of the COI?
Knowing the purpose of a COI, you make your decisions clearly. 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 shows you’re running your project the right way. It’s your way of checking that the right coverage is in place before any work starts. Vendors respect strong processes, and clear insurance expectations set the tone for professional and reliable partnerships.
This insurance verification shows that the vendor meets your contract’s insurance requirements, and you avoid paying for someone else’s mistake.
When Should You Ask for a COI?
When you ask for coverage upfront, you’re being diligent. This protects your people, your budget, and your project timeline. Ask for a COI when:
- You bring on contractors or service providers
- Any work happens on your property or site
- Vendors deal with the people at events, exhibitions, or conferences
- Vendors make deliveries, shuttles, or transport equipment using on-site vehicles, and require auto liability insurance
- A venue wants to see proof of business insurance coverage before they confirm your booking
- Your contract explains 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 in case your LLC serves clients, enters job sites, touches equipment, or offers risky services. A COI shows your clients how you avoid losing contracts, delaying projects, or facing personal liability if something goes wrong.
Most LLCs need a COI in situations like:
- Beginning to work with a new customer
- Signing vendor/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 vendor’s name and insured business information
- Insurance company names and NAIC numbers
- Types of coverage the vendor carries, like general liability, auto liability, workers’ compensation coverage, or umbrella liability
- Policy limits, showing how much coverage the vendor has
- Policy effective and expiration dates
- The insurance certificate holder's information
- Additional insured status or waiver of subrogation
What's the Difference Between a COI and an Insurance Policy?
How Do You Request a Certificate of Insurance from a Vendor?
Effective communication eliminates back-and-forth and ensures you start every project with a firm foundation. Here’s how to request a COI:
- Let the vendor know you require a COI
- Share the coverage types and limits you expect
- Inform the vendor of the delivery location and time for 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
Can I Fill Out My Own COI?
No, you cannot fill out your own Certificate of Insurance. A COI must always be issued by your insurance provider or agent. They’re the only ones authorized to verify your coverage and list details like policy limits, endorsements, and additional insured status.
If you try to create or modify a COI yourself, it’s considered invalid and can put you and your business at legal risk.
How Can illumend 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. The platform manages each COI for you and quickly lets you know whether the vendor’s coverage matches your request.
You don’t have to dig through paperwork or second-guess anything. illumend gives you clear answers when you need them, making COI management easier. Schedule a demo today!