What Is a Certificate of Insurance and Why Do I Need One?

If you own a business, work as a contractor, rent commercial space, or enter into agreements with other companies, you may be asked to provide a Certificate of Insurance. Often referred to simply as a COI, this document provides a convenient summary of certain insurance coverage you have in place. Understanding what a COI shows—and what it doesn't—can help you respond quickly when a client, landlord, or business partner requests one.

What Is a Certificate of Insurance?

A Certificate of Insurance is a document that provides evidence of certain insurance coverage at the time the certificate is issued. It typically summarizes important information about the insured, insurance company, policy types, policy numbers, coverage limits, and effective and expiration dates. A COI itself is not an insurance policy and does not replace or change the coverage provided by the actual policy.

What Information Is Included on a COI?

A Certificate of Insurance allows another party to quickly review key details about your business insurance without needing a copy of your entire policy. Depending on the coverage and certificate, it may include:



• Business or insured name
• Insurance carrier
• Types of insurance coverage
• Policy numbers
• Coverage limits
• Policy effective and expiration dates
• Certificate holder information

Why Would Someone Ask for a Certificate of Insurance?

A client, landlord, general contractor, property owner, or other organization may request a COI before allowing you to begin work or enter into an agreement. They may want confirmation that your business carries specific types and amounts of insurance, particularly when your work could expose them to financial or liability risks.

Who Needs a Certificate of Insurance?

COIs are particularly common for businesses that work on other people's property, hire subcontractors, rent commercial space, or enter into contracts with other organizations. Contractors, consultants, vendors, landscapers, cleaning companies, event professionals, and many other businesses may routinely receive requests for certificates.

Is a Certificate of Insurance the Same as Insurance Coverage?

No. A COI is evidence of coverage; it is not the coverage itself. The actual insurance policy determines what is covered, what is excluded, the applicable limits, and how a claim will be handled. A certificate generally does not create new rights or modify the terms of the underlying insurance policy.

What Is a Certificate Holder?

The certificate holder is generally the individual or organization requesting proof of your insurance. For example, if a contractor is hired to perform work at a commercial property, the property owner or general contractor might be listed as the certificate holder. Being named as a certificate holder does not automatically make that party an additional insured.

Certificate Holder vs. Additional Insured: What’s the Difference?

These terms are commonly confused. A certificate holder receives evidence of insurance, while an additional insured may receive certain coverage rights under the named insured's policy when the appropriate policy provisions or endorsements apply. If a contract requires additional insured status, simply listing the organization as a certificate holder may not satisfy that requirement.

How Do You Get a Certificate of Insurance?

If you need a COI, you can typically request one from your insurance agent or insurance company. Be prepared to provide the name and contact information of the organization requesting it, along with any specific insurance requirements contained in your contract. Providing those requirements can help your insurance professional determine whether your existing coverage aligns with what is being requested.

How Long Is a Certificate of Insurance Valid?

A COI shows the policy information and effective dates in place when the certificate is issued. It shouldn't be treated as a guarantee that coverage will remain unchanged through the expiration date shown. If you're relying on another business's insurance, updated certificates may be requested periodically to confirm current coverage.

Make Insurance Requirements One Less Thing Your Business Has to Worry About

Certificates of Insurance can seem like a small administrative detail until a missing document or coverage requirement delays a contract, project, or job. Wentworth Insurance combines more than 25 years of experience with a team of over 60 licensed insurance professionals serving clients across 48 states. As a family-owned independent insurance agency working with multiple trusted carriers, we can help business owners understand their coverage requirements, review their insurance program, and obtain the documentation they need. Contact Wentworth Insurance today for help with a Certificate of Insurance or to make sure your business coverage is ready for the opportunities ahead.