Guide · 5 min read
Certificate of Insurance (COI): A Contractor’s Guide
What a certificate of insurance shows, why general contractors ask for one, what “additional insured” really means, and how to keep your COIs from expiring.
Updated
The short answer
A certificate of insurance (COI) is a one-page summary that proves your business carries insurance. General contractors, property managers and customers ask for one before you start work, so they know that if something goes wrong on the job, your insurance, not theirs, is first in line.
You don’t fill out a COI yourself. Your insurance agent or broker issues it. For general liability, it’s usually on a standard form called the ACORD 25.
What’s on a COI
Most certificates show the same handful of details:
- Your business name and address (the “insured”)
- The insurance companies and policy numbers
- Effective and expiration dates for each policy
- Coverage types and limits: general liability, commercial auto, umbrella or excess, and workers’ compensation
- The certificate holder: the GC or customer who asked for it
- A description of operations, sometimes naming a specific project
“Additional insured” is not just a checkbox
Many GCs ask to be named as an additional insured on your policy. That gives them some protection under your coverage for claims arising from your work.
The certificate itself doesn’t create that protection. It has to come from an endorsement on your actual policy, which your agent adds. If a contract requires additional insured status, ask your agent for the endorsement, not just a certificate that mentions it. Your agent is the right person to confirm what your policy covers.
Why an expired COI costs you
Most GCs track expiration dates. When your policy renews, the old certificate expires with it, and many GCs will hold payment or keep you off the site until they have a current one. The fix takes minutes, but only if someone notices before the GC does.
How to stay on top of your COIs
- Keep a list of every GC or customer that has your COI, with their required limits and any additional insured wording.
- Put your policy renewal dates on a calendar, with a reminder a few weeks before.
- When your policies renew, ask your agent for updated certificates for everyone on your list in one go.
- Check each new certificate against the contract’s required limits before you send it.
- If you hire subcontractors, collect and track their COIs the same way. Your GC may ask for them.
General information, not legal, tax or insurance advice. Check the details with your insurance agent, licensing board or the general contractor who sent the paperwork.