Certificate of Insurance (COI): What It Is and What to Look For

A Certificate of Insurance (COI) is a document issued by an insurance agent or carrier that summarizes the key coverages, limits, and effective dates of a policyholder's insurance program. It is one of the most common documents exchanged in commercial business relationships.

What a COI Proves

A certificate confirms that, at the time it was issued:

• The named insured had active insurance coverage
• The coverage types and limits shown were in effect
• The carrier and policy numbers identified are accurate

What a COI Does NOT Prove

This is critically important: a certificate of insurance is NOT a guarantee of ongoing coverage. A policy can be cancelled after a certificate is issued. The certificate holder is not notified of a cancellation unless a notice of cancellation provision is specifically included.

Additionally, a certificate does not modify the terms of the underlying policy. If a contract requires a specific endorsement but the endorsement is not actually on the policy, the certificate showing that endorsement has been requested means nothing — it is the policy that controls coverage.

Key Elements to Review on Any COI

1. Policy Effective Dates: Confirm the policy is active and will be active for the duration of your project or engagement.

2. Coverage Types and Limits: Verify the coverage types (GL, Workers Comp, Auto, Umbrella) and limits match your contract requirements.

3. Additional Insured Status: If your contract requires AI status, confirm it is shown on the certificate AND that the actual endorsement is on the policy.

4. Waiver of Subrogation: If required by your contract, confirm a waiver of subrogation endorsement is shown.

5. Primary and Non-Contributory: If required, confirm P&NC language is shown and the endorsement is on the policy.

6. Carrier A.M. Best Rating: Look up the carrier's financial strength rating. A financially weak carrier may not be able to pay claims.

Common COI Red Flags

• Certificate issued by the policyholder themselves (should always be issued by the agent/broker)
• Missing or expired policy periods
• GL limits below your contract minimum
• No additional insured endorsement despite being listed on the certificate
• Carrier not admitted in California or with a low A.M. Best rating

Work With Capital & Co

Capital & Co issues certificates of insurance quickly and accurately. If you are on the receiving end and need help evaluating a certificate, our team can assist with that review.