What is a Certificate of Insurance (COI)? Definition & Guide

Certificate of Insurance: Formal Definition

A Certificate of Insurance (COI) is a document issued by an insurance company or broker that provides proof of insurance coverage. It summarizes key information about an insurance policy, including coverage types, policy limits, effective dates, and named parties. COIs are typically provided to third parties who have an insurable interest in the policy.

What Information Does a COI Contain?

Standard COIs include: Named Insured (the policyholder), Insurance Company name and contact, Policy Number and effective dates, Coverage Types (General Liability, Workers Comp, Auto, Umbrella, etc.), Policy Limits for each coverage, Certificate Holder (who is receiving the COI), Additional Insured status (if applicable), and Cancellation notice provisions. Most use standardized ACORD forms.

COI vs. Insurance Policy: Key Differences

A COI is NOT the insurance policy itself - it is summary proof that a policy exists. The actual policy contains full terms, conditions, exclusions, and legal details. A COI is typically 1-2 pages, while policies are 20-100+ pages. COIs can be issued quickly, while policy documents take time. Important: A COI does not confer coverage rights to the certificate holder.

When Are COIs Required?

COIs are commonly required in these situations: Vendor/contractor agreements before work begins, commercial leases (landlord requires tenant COI), event venues requiring event insurance, client contracts for professional services, government contracts and permits, and franchise agreements. Essentially, any situation where one party wants proof another party has insurance.

Why COIs Matter for Risk Management

COIs serve critical risk management functions: Transfer Risk - ensure vendors carry adequate insurance to cover potential losses, Verify Coverage - confirm insurance is active before work begins or contracts are signed, Protect Assets - additional insured status provides secondary coverage, Meet Requirements - demonstrate compliance with contract and regulatory requirements, and Prevent Gaps - track expirations to avoid coverage lapses.

Common COI Formats: ACORD Forms

Most COIs use standardized ACORD forms: ACORD 25 (Certificate of Liability Insurance) - most common for general liability, auto, umbrella. ACORD 27 (Evidence of Property Insurance) - for property coverage. ACORD 28 (Evidence of Commercial Property Insurance) - detailed property coverage. ACORD 24 (Certificate of Property Insurance) - alternative property form. Standardization makes verification easier and reduces errors.

How to Request a COI

To obtain a COI from a vendor or contractor: Specify exact requirements (coverage types and limits), provide your company name as Certificate Holder, indicate if Additional Insured status is required, set a deadline for submission, provide submission method (email, portal, etc.). Most insureds can request COIs from their agent/broker within 24-48 hours at no cost.