What is a COI (Certificate of Insurance)?

A COI or Certificate of Insurance is a document that proves that a business or individual is covered by insurance. It is a summary of the key terms and conditions of an insurance policy, including the coverage limits, the types of coverage, and the effective dates of the policy. This document is often required by businesses and individuals as proof of insurance coverage, especially when working with other parties.

Why is a COI important?

A COI is important because it protects businesses and individuals from potential liabilities. Without a COI, businesses and individuals may be exposed to unforeseen risks and financial losses. A COI helps ensure that all parties involved in a business transaction are informed of the insurance coverage in place, which can help prevent disputes and misunderstandings. In addition, some businesses or events may require a COI as a condition of working with them, so having a COI in place can also help secure new business opportunities.

Table 1: Common examples of when a COI may be required

Industry
Examples
Construction
Working on a construction site
Events
Hosting a large event such as a wedding or concert
Transportation
Driving for a ride-sharing service or transporting goods
Professional Services
Providing consulting, legal, or accounting services

What information is included in a COI?

A COI typically includes the following information:

  • Name of the insured party
  • Name of the insurance company providing coverage
  • Type of insurance coverage and policy number
  • Effective dates of the policy
  • Limits of liability, such as the maximum amount the insurance company will pay in the event of a claim

Table 2: Common types of insurance coverage included in a COI

Type of Insurance
Description
General Liability
Covers bodily injury or property damage caused by the insured party
Workers’ Compensation
Covers employees for work-related injuries or illnesses
Professional Liability
Covers claims of negligence or errors and omissions made by the insured party in the course of providing professional services
Commercial Auto
Covers vehicles used for business purposes, such as company cars or delivery trucks

How do I obtain a COI?

To obtain a COI, you should contact your insurance company or broker. Most insurers will issue a COI free of charge, although some may charge a small fee. When requesting a COI, make sure you provide the necessary information, such as the name of the party requiring the COI, the type of insurance coverage required, and the effective dates of the policy.

Table 3: Information needed to request a COI

Information Required
Description
Name of Insured Party
The name of the business or individual seeking coverage
Purpose of COI
The reason why the COI is being requested, such as to fulfill a contractual obligation
Type of Insurance Coverage
The specific type of insurance coverage required, such as general liability or workers’ compensation
Effective Dates of Policy
The dates during which the policy is in effect

FAQ

1. Why do I need a COI?

A COI is important because it provides proof of insurance coverage, which can help protect you from financial losses and legal actions. Some businesses or events may require a COI as a condition of working with them, so having a COI in place can also help secure new business opportunities.

2. How long does it take to get a COI?

The time it takes to get a COI can vary depending on the insurance company and the complexity of the request. In some cases, a COI can be issued immediately, while in other cases it may take a few days. It’s best to contact your insurance company or broker as soon as possible to request a COI.

3. Is a COI the same as an insurance policy?

No, a COI is not the same as an insurance policy. A COI is a summary of the key terms and conditions of an insurance policy, while an insurance policy is a legal document that outlines the details of the coverage and terms of the agreement between the insured party and the insurance company.

4. Will a COI cover me for all types of liability?

No, a COI will only cover you for the specific types of liability outlined in the policy. It’s important to review your policy carefully to understand what is and is not covered by your insurance.

5. What should I do if I notice an error on my COI?

If you notice an error on your COI, such as an incorrect name or policy number, you should contact your insurance company or broker immediately to request a correction. Errors on a COI can cause delays or disputes in business transactions, so it’s important to ensure that all information on the COI is accurate and up-to-date.