Important Facts about Certificates of Insurance

• What it is

  A COI is a statement of coverage that summarizes the key aspects of an insurance policy. It’s similar to an auto insurance ID card, but for business insurance.
• What it includes

  A COI typically includes:

  • The policyholder’s name
  • The policy’s end date
  • The type of coverage
  • The dollar amount of coverage
  • The name of the insurance company
  • The policy numbers
• When it’s needed

  A COI is often required as part of a contract or engagement. For example, if you’re renting space or equipment from someone, you might need to provide a COI.
• Who provides it

  The other party’s insurance company, broker, or risk management department should provide the COI.
• Why it’s important

  A COI helps build confidence in a business and minimizes risk. It shows that the other party has insurance to cover claims they might be responsible for. Without a COI, a company or contractor might have difficulty securing clients.
• What to check

  When you receive a COI, you should check the policy coverage dates and the limits of the policy. The COI doesn’t guarantee any coverage specifics, even if those specifics are outlined in the contract.

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