Certificate of Insurance (COI) (2024)

FAQs

Why do customers ask for coi? ›

Who Asks For a Certificate of Insurance? Both businesses and individuals ask for certificates of insurance. They do so in order to verify that someone has an adequate amount of insurance coverage in place to protect their business and assets.

A COI is a statement of coverage issued by the company that insures your business. Usually no more than one page, a COI provides a summary of your business coverage. It serves as verification that your business is indeed insured. Potential clients may request a COI as a condition of doing business with you.

Insureds don't have the authority to issue their own certificates. The agent, under contract with the carrier, issues a COI on behalf of the insurer.

A COI is used to verify that a company has the appropriate insurance coverage in place. This can be especially important for businesses that work with government agencies or other organizations that require coverage verification. Peace of mind.

No confidential or proprietary business information is included. It is customary for a COI to be issued on a standardized ACORD 25 form, which can simplify the review process for accuracy and conformance.

A certificate holder is someone that takes receipt or evidence of the COI. The certificate holder is the party to which the certificate of insurance is provided to. So if you're hiring someone, and you requested the COI, then you're the certificate holder.

Always request a COI from a contractor before they commence work on your project. The COI should be obtained before entering into business with the new third party. Simply ask them to provide a copy from their insurance carrier, who should supply it for free.

Key Takeaways. A certificate of insurance (COI) is issued by an insurance company or broker and verifies the existence of an insurance policy. Small business owners and contractors typically require a COI that grants protection against liability for workplace accidents or injuries to conduct business.

Certificate holder: entity for which the evidence of coverage is being provided. Producer's signature: signature of the Insurance Agent/Broker who issues certificates.

The Role of COI in Business Operations

They act as a shield, protecting businesses from unforeseen risks and liabilities. By requiring contractors and vendors to provide proof of insurance, businesses can establish a level of trust and confidence in their partners.

What type of information is not included in a certificate of insurance? ›

Final answer: A Certificate of Insurance typically contains elements like the Name of the insured, Policy number, and Effective date, but does not include the Premium. The premium is the cost of the insurance policy, a detail that is typically handled privately.

Certificate of Insurance (COI): A Proof of Coverage

It is not an insurance policy itself but a summary of key information related to an existing insurance policy. The purpose of a COI is to provide evidence that an individual or business holds specific types and amounts of insurance coverage.

Generally, a client will request a COI directly from your insurance company to confirm you have appropriate insurance coverage.

Clarity and Value. While insurance can provide peace of mind, it also can be a hard sell since it's something people may spend a lot of money on and never have to actually use. Customers need to feel that they are getting the most value for the best price. Always be clear about pricing and fees.

What Are Certificates of Insurance? A certificate of insurance (COI) is a document from an insurer to show you have business insurance. They're also known as certificates of liability insurance or proof of insurance.