What is a Certificate of Insurance?
A Certificate of Insurance is a standardized document issued by your insurance broker that provides proof of your active insurance policies. Because most businesses carry multiple policies with different insurers, your broker consolidates the information and issues the COI on your behalf.
Where do COI requests typically come from?
COIs show up in common business scenarios such as:
- Landlords requiring proof of insurance before move-in
- Cities requiring insurance before granting permits or licenses
- General contractors requiring subcontractors to submit a COI before starting work
- Property managers requesting insurance proof before allowing vendors onsite
You'll usually see these requirements appear in one of two ways:
- Contractual requirements – a written contract listing the exact insurance you must carry
- Informal requests – the requestor simply asks for a COI before work begins
What information does a COI contain?
A COI is a summary document. It typically includes:
- Types of coverage (general liability, workers' compensation, commercial auto, etc.)
- Policy limits
- Effective and expiration dates
- The insurers providing each policy
It also includes two customizable areas:
- Description box – used to confirm special requirements such as Additional Insured status or a Waiver of Subrogation
- Certificate holder – the party receiving the COI, usually the landlord, GC, or project owner
What is Additional Insured status?
An Additional Insured is a third party added to your policy to extend liability protection to them. In practice, this means if a claim arises out of your work, that third party may also be defended under your policy.
There are two common ways this is handled:
- Specific endorsement: your broker asks the insurer to add the requestor by name to your policy. This can take anywhere from an hour to several days.
- Blanket Additional Insured endorsement: your policy automatically grants Additional Insured status to parties that meet certain conditions—most often, that they are required to be an Additional Insured in a written contract.
If you regularly work with landlords, general contractors, or larger customers, having blanket Additional Insured wording already in place usually saves time and avoids back-and-forth.
What is a waiver of subrogation?
Normally, if your insurer pays a claim on your behalf, they may pursue a third party that contributed to the loss. This process is called subrogation. A Waiver of Subrogation is an agreement that your insurer will not go after a specific party for recovery.
Landlords, project owners, and general contractors often require this as a condition of working on their premises. For some policies—especially workers' compensation—this waiver can increase the insurer's risk, and they may charge an additional premium for it.
What challenges come with COIs?
Three issues come up repeatedly:
- Coverage gaps: you may not have the required coverage or limits, which can create unplanned costs if you need to adjust your policies.
- Unreasonable requirements: some requestors ask for limits or endorsements that are excessive for the actual risk or difficult for insurers to provide.
- Timing: endorsements that require insurer approval—like specific Additional Insured wording or Waiver of Subrogation—can take several business days.
Can COI requirements be negotiated?
Yes. While requestors often start with aggressive requirements, many of those terms are negotiable, especially when they go beyond what's typical in your industry. A good approach is:
- Clarify exactly what the contract requires versus what's "nice to have"
- Benchmark limits against similar businesses and projects
- Propose alternatives when a requirement is impractical or very costly
Your broker should be your partner in these discussions, not just a form-filler.
How much does this all cost?
Issuing a COI itself is typically free. If your policies already include blanket Additional Insured and Waiver wording, meeting most everyday requests does not add premium.
Costs arise when:
- You add new coverage purely to satisfy a contract
- You increase limits beyond what you would normally carry
- You add endorsements (like Waiver of Subrogation on workers' compensation) that directly increase insurer risk
COI best practices
- Review insurance requirements before you sign contracts, not after
- Work with a broker who can benchmark "normal" limits for your trade and region
- Keep core policies (GL, auto, workers' comp) clean and up to date
- Request COIs from your own subcontractors and vendors—the protection goes both ways