Certificate of insurance

A certificate of insurance (COI) is a document, usually an ACORD 25 for liability coverage, issued by your agent or insurer that lists your policies, carriers, policy numbers, effective dates and limits. A landlord, general contractor, lender or client asks for one to confirm you carry the coverage a contract requires. The form states that it is issued as a matter of information only and confers no rights on the certificate holder.

That disclaimer is the point most people miss. A certificate does not amend, extend or alter the policy, and it does not make the holder an additional insured. That status, along with a waiver of subrogation or primary and noncontributory wording, comes only from endorsements on the policy itself. A certificate can say "yes" to all three and still be wrong if the endorsement was never issued. Many states regulate certificate wording by statute, partly to stop agents from promising more than the policy provides.

When you receive a certificate, check the carrier and its rating, the policy dates, the limits against the contract, the endorsement boxes, and whether the policy has been cancelled since. Where the contract requires additional insured status, ask for the endorsement itself. The guide on certificates of insurance covers reading one, and the Certificate of insurance (COI) review checklist helps you check one.