Certificates of Insurance—often referred to as COIs—are a routine part of doing business, yet they're frequently misunderstood. Whether you're a contractor starting a new job, a business owner signing a lease, or an organization hosting an event, chances are you've been asked to provide one.
While a COI may look simple, it carries important information and contractual significance. Understanding what a Certificate of Insurance does (and does not) represent can help you avoid delays, coverage gaps, and unnecessary confusion.
A Certificate of Insurance is a one-page document that provides proof your insurance coverage exists. It summarizes key details of a policy, such as coverage types, limits, and policy dates.
What it is:
A Certificate of Insurance does not change, expand, or replace the coverage outlined in the policy itself—despite what many contractors believe."
–Stephanie Phillips, MLI Licensed Agent
Insurance coverage may be written on a blanket or itemized basis, depending on how exposures are structured. Blanket coverage applies a single overall limit across multiple locations, properties, or operations and offers flexibility when exposures are similar or subject to change. Itemized coverage assigns specific limits to individual locations or assets and is often used when exposures vary significantly or when certain properties require distinct coverage limits. The right approach depends on the nature of the risk and any contractual or underwriting requirements.
One item that often causes confusion is the certificate holder. The certificate holder is the individual or organization requesting proof of insurance and receiving the certificate for their records. Being listed as a certificate holder does not provide insurance coverage, grant policy rights, or change the terms of the policy in any way.
In some situations, the COI may also reflect additional insured status. An additional insured is a person or entity added to an insurance policy who receives certain liability protections under that policy. This status is commonly required by contracts and provides broader protection than simply being listed as a certificate holder. Adding an additional insured typically requires a policy endorsement and may impact premiums depending on the level of exposure and the coverage terms involved.
Certain contractual terms may also appear in the remarks section of a Certificate of Insurance. A waiver of subrogation prevents an insurance company from seeking reimbursement from another party after paying a claim and is commonly required in construction and service contracts to reduce disputes.
Coverage may also be designated as primary and non-contributory, meaning one policy responds first to a claim without seeking contribution from another party's insurance. These provisions are not automatic and typically must be added by policy endorsement.
The good news? Getting a Certificate of Insurance is usually a straightforward process, but it's important that it's issued correctly. Having the certificate provided directly by your insurance agent or carrier helps ensure the information is accurate, current, and aligned with contract requirements. Many insurance carriers (like The Hartford and Travelers) offer service centers that allow certificates to be issued or updated quickly. Using these tools helps reduce errors, speeds up turnaround time, and keeps projects moving smoothly.
A Certificate of Insurance should always be issued directly by the insurance agent, broker, or carrier to the requesting entity."
–Reid Miegel, MLI Licensed Agent
While Certificates of Insurance may feel like routine paperwork, they play an important role in business relationships. Understanding what a COI represents can help prevent confusion and avoid unnecessary coverage issues.
If questions come up, talking through them with an insurance professional can go a long way toward making sure certificates are issued properly and coverage meets expectations.
Need help with a COI or reviewing insurance requirements? Reach out to Mountain Lakes Insurance today.