Handbook / Business insurance

Certificate of insurance: what it is and how to request one

Sooner or later a client, landlord or venue will ask: "Can you send a certificate of insurance?" For many small businesses this is the first time they think about the paperwork behind their policies. The request is routine, and responding quickly makes you look professional.

What a COI is

A certificate of insurance is a short document issued by your insurer or agent that summarises your coverage. It typically shows:

• your business name and address as the named insured
• the insurance companies
• policy numbers
• types of coverage, such as general liability, auto, workers' compensation or professional liability
• coverage limits
• policy start and end dates
• the certificate holder, meaning the person or business who asked for it
• any additional insured or other special wording

Many insurers use a standard industry form for liability certificates, so most look similar.

What a COI is not

A COI is evidence that coverage exists on the date it is issued. It is not the policy, and it does not change policy terms. If a client needs special protection, such as additional insured status or a waiver of subrogation, that usually requires an endorsement to your policy. Listing it on the certificate without an endorsement does not create the coverage.

Who asks and why

• Clients want to know you can pay for damage or injury you cause.
• General contractors often require subcontractors to carry insurance and name them as additional insureds.
• Landlords and coworking spaces require tenants to carry liability cover.
• Venues and event organisers ask vendors and performers for COIs.
• Platforms and marketplaces may require proof for certain services.

The SBA's insurance guide explains the main types of business insurance; general liability is the most commonly requested.

How to request one

1. Read the client's requirements. Contracts often list coverage types, minimum limits and exact wording.
2. Contact your agent or insurer, or use their online portal.
3. Provide the certificate holder's details: name and address.
4. Ask about endorsements if additional insured status or other changes are required, and whether they affect your premium.
5. Check the certificate before sending: names, dates, limits and wording.

Keep a standard certificate, with no specific holder, ready for routine requests, if your insurer allows it.

Additional insured

Being an additional insured gives the client some protection under your policy, usually for claims arising from your work for them. Insurers add additional insureds by endorsement, sometimes on a blanket basis for anyone you are contractually required to add. Ask your agent which option your policy has.

Checking COIs from subcontractors

When you hire other businesses, ask them for certificates too. Check:

• the named insured matches the business you hired
• policies are current for the full project
• limits meet your contract requirements
• you are named as an additional insured if required

If a subcontractor is uninsured, claims from their work may fall on you. See subcontracting. Remember that independent contractors are responsible for their own businesses, including insurance; the IRS describes contractors as people in an independent trade, business or profession.

Keeping records

Keep a simple log:

• certificates you issued: holder, date, project
• certificates received: subcontractor, policy dates, limits
• renewal dates, so you can send updated certificates when policies renew

Set reminders a few weeks before policies expire.

Common problems

• certificate shows an old policy period
• client name spelled differently from the contract
• limits below what the contract requires
• additional insured listed without an endorsement
• certificates not updated after renewal

Responding to a COI request

A quick, organised reply makes a good impression:

1. Thank the client and confirm what they need.
2. Check the requirements against your current policies.
3. Request the certificate, and any endorsement, from your agent.
4. Review it before sending.
5. Save a copy in the client's folder.

If your coverage does not meet a contract's requirements, tell the client early and ask your agent about options, rather than signing a contract you cannot comply with.

When you are the one asking

Ask subcontractors and suppliers for certificates before work starts, not after. Put the requirement in your agreement with them, including coverage types, limits and the certificate holder details.

A COI summarises your coverage; request it from your agent, check the details, add endorsements where contracts require them, collect certificates from your own subcontractors, and track renewal dates.