What Is a Certificate of Insurance (COI)? Small Business Guide

If you run a business, sooner or later a client, landlord, or general contractor will ask you for a "COI" before they let you start work. Here is exactly what that means, what is on the document, and how to get one without losing the job while you wait.

What is a certificate of insurance?

A certificate of insurance is proof, on paper, that your business is insured. It is a summary of your active policies, not the policies themselves. Insurers and agents issue it on a standardized industry form called the ACORD 25, which is why COIs look the same no matter who your carrier is.

The certificate does not provide coverage or change your policy. It simply confirms to a third party that the coverage exists, what it covers, and when it expires. Think of it as a receipt that says your general liability and other policies are in force.

What information is on a COI?

Every certificate of insurance includes the same core details:

• The insured — your business name and address.
• The carriers — the insurance companies providing each policy.
• Types of coverage — such as general liability, workers compensation, commercial auto, and umbrella.
• Coverage limits — the maximum each policy will pay, often $1 million per occurrence and $2 million aggregate.
• Policy dates — the effective and expiration dates, so the holder knows the coverage is current.
• Certificate holder — the client or party requesting proof, named at the bottom.
• Additional insureds — any party your policy has been extended to protect, if requested.

Why do clients require a certificate of insurance?

Clients, property managers, and general contractors ask for a COI to protect themselves. Before they let you on their property or sign a contract, they want confirmation that if you damage something or someone gets hurt, your insurance pays, not theirs. Most commercial contracts will not begin until a valid certificate is on file.

This is why service businesses live and die by fast certificates. A cleaning company bidding an office building, a landscaper taking on an HOA contract, a pressure washing crew at a retail plaza, or a contractor on a job site all need a COI in hand before the first day of work.

COI vs. additional insured: what is the difference?

These two get confused constantly, but they are not the same thing. A COI is proof that coverage exists. An additional insured endorsement actually extends your policy to protect another party under your coverage.

In practice, a client often asks for both: a certificate showing your coverage, and an endorsement naming them as an additional insured so your policy responds if they are pulled into a claim arising from your work. If your contract requires "additional insured" status, a plain certificate alone is not enough, and your broker needs to add the endorsement.

How to get a certificate of insurance

Your agent or broker issues the certificate, usually the same day and at no charge. You tell them who needs it, the limits the contract requires, and whether the holder must be added as an additional insured. The broker prepares the ACORD 25 and sends it to your client.

The difference between agencies shows up in turnaround time. When a contract is waiting, a slow certificate can cost you the job. As an independent brokerage, we issue COIs and additional insured endorsements fast, so you can say yes to work the moment it comes in. If you also need to add or raise coverage to meet a contract, we can shop that across carriers and add a commercial umbrella when the limits call for it.

Certificate of insurance FAQ