A certificate of insurance (COI)—sometimes referred to as a certificate of liability—is an official document provided by an insurance company that verifies a business or individual has active insurance coverage.
It outlines key policy details, including coverage types, limits, and the policy period, offering proof of financial protection against claims for bodily injury, property damage, or other liabilities.
Contractors’ insurance certificates offer proof that unforeseen accidents, damages, and other risks can be covered. Below we have provided a list of common instances where a COI should be readily available.
When Proof of Liability Insurance Is Necessary
Hiring
If you hire subcontractors, they must provide a certificate of liability insurance before starting work. This ensures they have coverage in case of injuries or property damage.
To confirm the policy is active and accurate, you may prefer having their insurance agent send you a copy directly.
Similarly, if you work as a subcontractor or contractor, you’ll need to present your own proof of liability insurance to your employer, who may also verify it with your insurer.
Vehicle Accidents
If you own a work vehicle and it gets damaged while parked at your home, business, or a client’s location, it’s typically covered under a general liability policy. A contractor’s insurance certificate gives peace of mind to you and the owner of the location, and it will be necessary when reporting an incident.
However, if a worker has an accident while driving your vehicle, it wouldn’t be covered. In that case, having auto liability insurance is important. Auto liability can cover both vehicles you own and those you don’t, such as an employer’s vehicle.
Your certificate of liability insurance will specify the type of auto liability coverage included in your policy.
Submitting Bids
You will not be considered for a government contract unless you have general liability insurance for contractors. Homeowners are also increasingly requiring a certificate of liability insurance before hiring you for a job.
This document outlines your coverage, with most clients focusing on whether you have workers’ compensation and general liability insurance.
These policies protect clients by covering worker injuries and providing compensation for any property damage or personal harm caused during the project.
State Law Compliance
Some states have enacted laws to regulate certificates of liability insurance due to instances where these documents contained false information from insurance agents or their clients.
While specific regulations vary by state, they generally address the following areas:
Standardization of Forms: Mandating the use of standardized certificate forms to ensure consistency and prevent unauthorized alterations.
Accuracy of Information: Requiring that all details on the certificate accurately reflect the actual terms and conditions of the insurance policy.
Prohibition of Misrepresentation: Making it illegal to include false or misleading information on certificates, with penalties for violations.
Restrictions on Additional Wording: Limiting or prohibiting the addition of terms or clauses not present in the underlying policy to prevent misrepresentation of coverage.
These measures aim to enhance transparency and trust in the use of certificates of insurance.
Conclusion
A certificate of insurance is an invaluable document for contractors as it provides proof of coverage, ensuring protection for both the contractor and their clients.
It demonstrates compliance with insurance requirements, such as workers’ compensation and general liability, safeguarding clients against liability for worker injuries and property damage.
Regulated to prevent fraud, certificates of liability promote trust and transparency, making them indispensable for professional operations.
Need to request yours? Visit our Contractors’ Insurance Certificate Center.
Frequently Asked Questions
Q: What is a Certificate of Insurance (COI)?
A Certificate of Insurance (often called a certificate of liability) is a one-page document issued by your insurer or agent that proves you have active insurance. It summarizes key details—policy types, limits, effective dates, and carrier information—so clients and GCs can confirm you meet their requirements before work begins.
Q: What information does a COI include?
A COI lists your business name, insurance company, policy numbers, coverage types (e.g., General Liability, Workers’ Compensation, Commercial Auto), effective and expiration dates, and liability limits. It also shows the certificate holder and, when endorsed, notes such as Additional Insured, Primary & Noncontributory, and Waiver of Subrogation.
Q: Who issues a COI and how do I get one?
Your insurance agent or carrier issues the COI. Request it with the exact contract language you need, including who should be the certificate holder and any required endorsements. For accuracy and credibility, many GCs prefer your agent to send the COI directly to them.
Q: Is a COI the same as an insurance policy?
No. A COI is proof of coverage at a point in time—it doesn’t grant coverage or change your policy. The actual policy and endorsements control what is or isn’t covered, not the certificate.
Q: When should contractors provide or request a COI?
Provide a COI whenever you bid, sign a contract, start a project, or request site access. Request and verify COIs from all subcontractors before they begin work and whenever a policy renews. Keep copies on file and track expiration dates so nothing lapses mid-project.
Q: What’s the difference between a certificate holder and an additional insured?
A certificate holder is the party receiving proof of your insurance. An additional insured is a party you’ve added to your policy via endorsement so your policy can defend and indemnify them for liability arising out of your work. Being listed only as a certificate holder does not provide coverage.
Q: How do “Primary & Noncontributory” and “Waiver of Subrogation” relate to a COI?
They are common contract requirements that must exist on your policy via endorsement. “Primary & Noncontributory” means your policy responds first without seeking contribution from the additional insured’s policy. A Waiver of Subrogation prevents your insurer from seeking recovery against certain parties after paying a claim. The COI simply evidences that these endorsements are in place.
Q: Does a COI prove I meet completed operations requirements?
Only if your policy includes Products–Completed Operations coverage and you carry the required Additional Insured—Completed Operations endorsement. The COI may reference these endorsements, but the endorsements themselves must be attached to your policy for coverage to apply.
Q: How long is a COI valid?
A COI is valid for the policy term shown, but many contracts require updated certificates at renewal. If project work extends past the expiration date, you’ll need to issue a fresh COI that reflects the renewed policy period.
Q: Can I add custom wording to a COI?
Many states restrict adding language that doesn’t mirror your policy. If a GC requests specific wording, your agent typically must confirm it’s supported by your actual endorsements. Otherwise, it can’t be shown on the certificate.
Q: Do I need a COI from every subcontractor?
Yes. Require current COIs that show the exact coverages and limits your contract demands, including Additional Insured, Primary & Noncontributory, and Waiver of Subrogation where required. Ask that the agent send the COI directly to you and verify it before the sub starts work.
Q: Does a COI cover vehicle accidents or damage to my company truck?
A COI can show evidence of Commercial Auto liability and physical damage coverage, but it does not itself provide coverage. Liability for accidents is handled by your Commercial Auto policy, while damage to your own vehicle is addressed by the policy’s physical damage (collision/comprehensive) section. General Liability does not cover your own vehicles.
Q: What if employees or subs drive vehicles the business doesn’t own?
If your crews use personal or rented vehicles for business, you may need Hired & Non-Owned Auto (HNOA) liability. Ask your agent to include HNOA on your policy and reflect it on the COI if your contract requires it.
Q: Are Workers’ Compensation and Employers’ Liability shown on a COI?
They can be. Many clients require proof of Workers’ Compensation and Employers’ Liability along with General Liability and Commercial Auto. Make sure the COI lists these policies and that limits meet the contract.
Q: Can a COI guarantee notice if my policy is canceled?
COIs may display a notice provision, but actual cancellation notice rights are governed by your policy and state law. If a client requires guaranteed notice, your agent may need to add a specific endorsement rather than relying on certificate language.
Q: What should I check before accepting a COI?
Confirm the insured’s legal name, policy numbers, coverage types, limits, effective/expiration dates, required endorsements (AI, PNC, Waiver), and that the certificate holder is correct. If anything is unclear, contact the issuing agent for confirmation and request copies of endorsements when needed.