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What is a Certificate of Insurance and Why Do You Need One?

A Certificate of Insurance (COI) is more than simply a piece of paper—it’s proof of your coverage and professionalism.

 

Whether you’re a contractor, small business owner, event organizer, or another profession, having a COI guarantees that you meet legal and client demands while simultaneously building trust with your partners. 

 

Now let’s take it a step further and discuss what a certificate of insurance is, why having one is so important, and how you can get one.

 

"What is a Certificate of Insurance and Why Do You Need One? Featuring a person holding an insurance document.

 

What is a Certificate of Insurance? 

A Certificate of Insurance (COI) is a standardized document that verifies that your business or services are covered by active insurance coverage. Here’s what’s included in your standard COI: 

 

  • Policyholder Information: Identifies the insured company or person.
  • Insurance Company Details: Provides contact information for the insurer. 
  • Policy Types & Coverage Limits: Provides a list of insurance policies, (workers’ compensation, general liability, etc.), along with their respective limits.
  • Effective Dates: Indicates the beginning and ending dates of coverage.

COIs can include multiple different policy types such as general liability, professional liability, and commercial auto insurance, all listed on the same document. 

 

Why is a Certificate of Insurance Important? 

  • Provides Proof of Coverage: Having a COI shows others such as clients, partners and vendors that you’re insured, giving them peace of mind.
  • Establishes Trust & Professionalism: Demonstrates that you take financial responsibility seriously, increasing confidence in business interactions.
  • Meets Contractual Obligations: Guarantees adherence to contracts requiring insurance protection, shielding all parties from potential liabilities.

How Does it Differ from an Insurance Policy? 

A common misperception is that a Certificate of Insurance (COI) is the same as an insurance policy. Although they are linked, they perform completely different functions:

 

  • A Certificate of Insurance is a Summary: A Certificate of Insurance is a one-page document that summarizes the insurance coverage a policyholder has. It contains fundamental information such as policyholder information, types of coverage, coverage limits, and effective dates.
  • An Insurance Policy is Comprehensive: In contrast, an insurance policy is a lengthy contract outlining all of the coverage’s terms and conditions. It offers information exclusions, deductibles, premiums, and other relevant clauses.
  • Why the Difference Matters: A COI is a quick way of proving coverage, but it does not include the complete terms or fine print of the insurance policy. Businesses that require a COI should always review the entire policy to ensure that it satisfies their needs.

Close-up of a property rental contract signing, showcasing the importance of Certificates of Insurance in rental agreements.

 

When You Might Be Asked for a Certificate of Insurance

A COI may be required in a number of professional settings:

  • Business Contracts: Prior to beginning a project, clients may ask for proof of coverage.
  • Property Rentals: Landlords frequently ask commercial tenants to provide proof of liability insurance in the form of a COI.
  • Event Planning: Venues may request a Certificate of Insurance (COI) to prove your coverage for accidents or damage.
  • Client Peace of Mind: Clients frequently request COIs to limit their responsibility while working with contractors or service providers.

How to Get a Certificate of Insurance

  • Request a COI From Your Insurer: Most insurers will give them to you at no additional expense.
  • Review the Details: Check that insurance limits, dates, and coverage(s) making sure that they align with the details on your policy, and are consistent with client or contract requirements.
  • Request in Advance: Always have a COI available before beginning a project or signing a lease.

Mistakes to Avoid When Handling a COI

When providing or handling your Certificate of Insurance, make sure to avoid the following mistakes: 

 

  • Providing an Outdated COI: Over time, insurance coverages and details tend to change. Using an expired COI or one that does not reflect current coverage may result in disputes or contract termination.
  • Failing to Meet Client Requirements: Certain contracts demand specific coverages or endorsements, such as adding the client as an additional insured. Always double-check the COI to make sure it fits the other party’s specifications.
  • Relying Solely on a COI: A COI does not replace the entire insurance coverage. Always check the entire policy to understand the actual terms.

Final Thoughts 

A Certificate of Insurance is more than simply a requirement— it’s a valuable tool for protecting your business, winning client trust, and pursuing emerging opportunities.

 

Don’t wait to secure your business coverage and COI. Visit EZ.Insure today to learn about comprehensive coverage options so your business can stay successful and thrive for years to come. 

 

To get started, just enter your ZIP code on the right side of the screen, or give us a call at (855)-694-0047.

 

Was this blog helpful? Check out our full resource library to gain more tips and advice to help your business stay safe and save money. 

 

Do You Need a Certificate of Insurance?

There are lots of ways to spread the word about your business, from advertising to word of mouth to social media marketing. All of these things help to get your name out there, and tell people that you’re the best in the business. Your potential customers or clients also want to know that they can trust your services and advice. They want to know that, if anything goes wrong, you will take responsibility and make things right. Let’s take a look at what a COI is and why it is important.

What Is a Certificate Of Insurance?

piece of paper with signature and red certification circle on the bottom
A COI is a physical or electronic document that proves you have a valid commercial insurance policy.

If you have a car, then you have auto insurance, right? And if you have auto insurance, then you have an insurance ID card in your glove compartment. Think of a certificate of insurance as something similar.  A COI is a physical or electronic document that proves you have a valid commercial insurance policy. It is a quick overview of the policy you hold, and includes:

  • Your name and business information
  • The insurance company that issued your policy
  • The policy number, effective date, and expiration date
  • The type of policy (such as general liability or professional liability)
  • Policy limits and deductible amounts
  • Additional insured, meaning anyone else who is covered under your policy

These certificates might be packed with information, but they are only one page long. This means that you can post them in your place of business, or easily show them to clients (instead of having to pull out your multi-page insurance policy). 

Do I Need a COI?

If your business provides advice or services to customers or clients, then there is always the possibility for things to go wrong. A handyman might accidentally put a ladder through a window, a freelance IT tech could miss a data breach, a contractor might be overseeing a building site where someone gets injured. To protect against claims of physical injury, property damage, financial loss, or even bad advice, you

 need at least one type of commercial insurance policy, and a certificate of insurance to go along with it.

two hands shaking with a red certified document in the background

Not many companies or customers want to work with a business that doesn’t have insurance, so being able to show them that piece of paper is an extremely important way to keep your business growing. If you are a contractor, then you will probably be required by the companies that hire you to show a COI. Other business owners can preemptively offer a COI to a client as a way to earn trust, get an edge on the competition, or simply show that they are professionals who take their business seriously. 

How Do I Get One?

caucasian hands with one hand on laptop keyboard and the other hand holding a cell phone
If you need certificates of insurance to give to clients, you can contact your insurance company, agent, or broker.

Finally, there’s something fairly simple associated with your business insurance! Getting your initial certificate of insurance shouldn’t require any extra work on your part, it should be included – for free – with all of the documents you receive after purchasing your policy. If you need additional certificates to give to clients, you can contact your insurance company, agent, or broker. These additional certificates are also free and should be quick and easy to get. If you need to add your client as an “additional insured” or add extra coverage for a specific job, then it may take a few days to a few weeks to get a new COI.

When it comes to your commercial insurance, your policy should be “if you’ve got it, flaunt it.” If you’ve taken the responsible step of insuring your business, then let your customers know – and watch your business take off. If you’re shopping around for commercial insurance, or need a new plan, then EZ.Insure is the place to be. We’ll answer all of your questions, give you instant quotes, even sign you up – all for free! Don’t go another day without the policies that will get you noticed, or with a policy that’s not working for you. Get started with us by simply entering your zip code in the bar above, or speak to an agent directly by calling 888-615-4893.

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