A certificate of insurance (COI) is a coverage summary issued by your insurer. It’s also known as a certificate of liability insurance or proof of insurance. A COI is typically one page long and includes the policy’s effective date, coverage limits, and more.
Some clients require a certificate of insurance before working with your business. You can request a COI from your insurance company or have one sent directly to them.
After receiving your COI, you’ll want to verify this information against your policy documents.
You can request a certificate of insurance for any type of commercial coverage. Some common ones your clients might ask for include:
Most states require businesses with employees to have workers’ compensation insurance, which covers medical expenses and a portion of lost wages for work-related injuries and illnesses.
A certificate of workers’ compensation insurance demonstrates that you have coverage and limits that comply with the law.
A certificate of auto liability insurance proves that you have commercial auto coverage for accidents involving your work vehicles. If you finance your vehicle, the leasing company will probably ask to be added to your policy and COI as an additional insured.
An additional insured is someone the policyholder extends coverage to by listing them on the insurance policy and certificate of insurance. This endorsement states the coverage type and limits the additional insured is entitled to in the event of a claim.
For example, a general contractor might ask a subcontractor to name them as an additional insured before starting a job. This covers the general contractor if a client sues for the subcontractor’s mistake.
A business might need to provide a certificate of insurance when signing contracts, leasing commercial vehicles and property, and working as a contractor or subcontractor.
Depending on the industry, you might need a general or professional liability COI before working with clients.
Example: A client asks to see an accounting firm’s certificate of insurance to confirm that it has professional liability coverage. If the accounting business makes a mistake that causes the client to lose money, its insurance can pay for the damages.
If you rent a commercial property, the owner might require a certificate of BOP insurance as proof that your business has coverage in case of property damage or personal injury.
Example: A property management company asks to see a potential tenant’s COI before signing a lease. This step protects the landlord by proving the tenant has coverage for on-site liability, such as a fire or a customer’s slip and fall.
Contractors and subcontractors might need to provide COIs for general liability or workers' compensation insurance. These COIs prove they have protection for work-related accidents and employee claims.
Example: A municipality is hiring a construction company to complete road work and asks to see a COI. Confirming the construction company’s insurance coverage is important because it can protect the city from liability if the contractor causes an accident.
You’ll have to reach out to your insurer to get a certificate of insurance. Luckily, Progressive makes this process easy. You can call us at 1-800-444-4487, or speak with an agent. For certain policies, you can even request a certificate of insurance online.
