Business leaders are constantly moving fast: signing leases, hiring vendors, planning events, and closing client contracts. At some point in that process, someone will almost certainly ask you for a Certificate of Insurance (COI).

If you’re not familiar with COIs, the request can feel like an obstacle that slows things down. But the truth is, this one-page document is one of the simplest, most important ways to keep your business moving forward.

What Is a Certificate of Insurance?

A Certificate of Insurance (COI) is a one-page summary of your business’s insurance coverage. It’s not the full policy, but it proves coverage exists and that it meets specific requirements tied to a contract, lease, or project.

Most COIs follow the standardized ACORD 25 format, which ensures anyone who reviews it knows exactly what they’re looking at. A typical COI includes:

• Your business name and contact info
• The issuing insurance provider
• Types of coverage (e.g., general liability, auto, workers’ comp)
• Policy limits (in dollar amounts)
• Effective and expiration dates
• Certificate holder (the party requesting proof)
• Any Additional Insureds listed on your policy

Think of it as a snapshot: enough detail to prove you’re insured and ready to do business, without requiring someone to wade through dozens of pages of policy language.

Why COIs Exist

Every deal comes with some risk. A COI is simply the way to show that risk is accounted for and that insurance coverage is active, adequate, and ready if something goes wrong.

Landlords want proof you have liability insurance before handing over the keys to your new office. Clients want reassurance they won’t be left financially exposed if an accident happens mid-project. Event venues need confirmation they’re protected against on-site mishaps. Even investors may ask for COIs during diligence, especially when big contracts or regulated industries are involved.

In each case, the COI acts as a signal of trust. It tells the other side: we take our responsibilities seriously, and we’re covered. That confidence makes it easier to sign deals, launch projects, and keep business moving.

When You’ll Be Asked for a COI

Business leaders are often surprised at how frequently COIs come up. Some common scenarios include:

• Signing a lease. Most landlords require proof of general liability before you can move in.
• Hiring contractors or vendors. A COI ensures they carry their own coverage and won’t expose your business to claims.
• Running an event. Venues almost always ask for a COI to protect themselves from on-site risks.
• Client contracts. In industries like consulting, construction, or SaaS, clients may require a COI before kicking off work.
• Partnerships or joint ventures. Companies often exchange COIs to confirm each party has adequate coverage.

If you’re scaling quickly, chances are you’ll see COI requests more than once in the same quarter.

Understanding the Details on a COI

It helps to know what you’re looking at when reviewing a Certificate of Insurance. Here’s a deeper dive into what you’ll typically find in the ACORD 25 format:

• Named Insured: The business or individual covered by the policy. This should always match the legal name of the entity doing business. If it doesn’t, coverage may not apply.
• Producer: The insurance provider, agent, or broker who issued the certificate. This is your go-to contact for confirming details or requesting changes.
• Coverage Types: Lists the policies in place, like General Liability Insurance, Hired & Non-Owned Auto Insurance, or Business Property Insurance. Each type addresses different risks, so make sure the coverage aligns with the work being done.
• Policy Numbers: Unique reference codes tied to each line of coverage. They make it easy to verify policies directly with the insurer.
• Limits of Liability: The maximum amounts the insurer will cover. For example, a General Liability Insurance policy might list $1M per occurrence and $2M aggregate. You should always check these against contract requirements.
• Effective Dates: Coverage only matters if it’s active. Confirm that the policy is valid for the full duration of your lease, contract, or project.
• Certificate Holder: The individual or organization requesting proof of insurance. Their name should appear here.
• Additional Insured: Sometimes another party (like a landlord or client) is temporarily added to your policy. This extends some of your coverage to them for the duration of a specific agreement. It’s a common request but can impact your policy terms.

Knowing how to read these details helps you confirm that you and your vendors are properly protected, reducing the risk of costly misunderstandings.

Why Businesses Request COIs

From a risk management standpoint, COIs serve four essential purposes:

1. Verification: They prove insurance exists.
2. Protection: They ensure liability is distributed appropriately.
3. Compliance: Many contracts and regulations require proof of coverage.
4. Trust: They demonstrate professionalism and responsibility.

Without a COI, you may lose opportunities—or worse, expose your business to liabilities that aren’t yours to carry.

How to Get a COI

The good news: getting a COI should be quick and painless. Here’s how to streamline the process:

1. Contact your insurance provider or broker. Provide the certificate holder’s details and any special requirements (like coverage limits or “additional insured” language).
2. Clarify timing. Let your provider know when you need it—speed matters when deals are on the line.
3. Review carefully. Double-check that names, dates, and limits are accurate before sending it on.
4. Keep a copy. Store it with your records, ideally alongside the related contract.

Example: A company is about to sign their first office lease. The landlord refused to hand over the keys until they saw proof of liability coverage. The founder had never heard of a COI, but once it was issued, the deal closed the same day. A quick certificate meant no lost time and no lost opportunity.

If you’re a Vouch customer, you can request COIs directly from your dashboard.

Common COI Misunderstandings

Many people assume that once a COI is in hand everything is settled, but that’s not always the case.

• First, it’s important to remember that a COI is not the insurance policy itself. It’s a summary, designed to provide quick proof of coverage, but it doesn’t spell out all the details, conditions, or exclusions that the full policy contains. If there’s ever a dispute or claim, the actual insurance contract is what governs, not the certificate.
• Second, a COI reflects coverage at a single point in time. A policy can be canceled the day after a certificate is issued, leaving the coverage void even though the COI looks valid. That’s why it’s smart to request updated certificates periodically if you’re working with contractors or vendors on long-term projects.
• Finally, not all COIs are created equal. The details matter: the limits listed may fall short of what your contract requires, the dates may not cover the full term of your project, or the coverage types may not align with the risks at hand. Be sure to confirm that the certificate matches the requirements of your agreement.

What Happens If You Skip the COI

Failing to provide or request a COI can have real consequences:

• Financial loss. You could be responsible for claims or damages that weren’t your fault.
• Breach of contract. Many agreements require proof of insurance; missing it can jeopardize deals.
• Lost opportunities. Without a COI, you may not be able to sign leases, hire vendors, or close client contracts.

It may just look like one page of paperwork, but it can make or break your next deal.

Best Practices for Managing COIs

To stay organized and compliant, treat COIs as part of your business workflow:

• Store digital copies in a secure, accessible place.
• Track expiration dates so coverage doesn’t lapse mid-contract.
• Review each certificate carefully before sending.
• Log key details in a tracker (certificate holder, issue date, expiration date, additional insured status, related contract).
• Partner with a trusted broker like Vouch who can help navigate requirements.

And most importantly: request COIs proactively. Don’t wait until the last minute—make it a standard step in your contracting and vendor onboarding process.

Protect Your Company and Partners

A Certificate of Insurance plays a critical role in protecting your company and your partners. Whether you’re signing a lease, hiring a contractor, or entering a new venture, a COI ensures risks are managed fairly and transparently—so you can keep momentum without unnecessary roadblocks.

Vouch Specialty Insurance Services, LLC (CA License #6004944) is a licensed insurance producer in states where it conducts business. A complete list of state licenses is available at vouch.us/legal/licenses. Insurance products are underwritten by various insurance carriers, not by Vouch. This material is for informational purposes only and does not create a binding contract or alter policy terms. Coverage availability, terms, and conditions vary by state and are subject to underwriting review and approval.

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