Insurance Certificate, defined

A Certificate of Insurance (COI) is a document issued by an insurance company or broker that verifies the existence of an insurance policy and provides information on the specific coverage provided. It’s typically used to provide proof to a third party, such as a client or landlord, that a person or business has insurance coverage. Here’s what a COI typically includes:

Name of the insured: The person or entity that has purchased the insurance.

Type of coverage: This could be general liability, auto, workers’ compensation, property, professional liability, etc.

Policy limits: This shows the maximum amount the insurance company will pay for a claim.

Policy effective and expiration dates: The period during which the policy is active.

Name of the insurance company: The company that has underwritten and is providing the insurance.

Policy number: A unique identifier for the insurance policy.

It’s important to note that a COI is a snapshot of the policy details at a specific point in time. It doesn’t modify or alter the coverage in any way, nor does it confer contractual rights. It merely serves as evidence of the insurance coverage. If third parties require proof of insurance, the insured party provides them with this certificate.

How does an insurance certificate work?

A Certificate of Insurance (COI) acts as a representation of the insurance policies held by an individual or business. Here’s a breakdown of how it works:

Request for Proof: In many business transactions, one party might require the other to prove they have certain insurance coverages. This can be due to contractual obligations, regulatory requirements, or to mitigate potential risks. For instance, if you’re a contractor working on a client’s property, the client might want assurance that you have liability insurance in case something goes wrong.

Issuance of COI: Once the need for a COI arises, the insured (the individual or business covered by the insurance policy) will request a COI from their insurance agent or directly from the insurance company. The insurer or the broker then issues the COI, which summarizes the details of the insurance coverage.

Presentation: The insured presents the COI to the requesting party as evidence of insurance. This doesn’t provide coverage to the certificate holder, but rather confirms the types and amounts of coverage the insured has.

Verification: The party requesting the COI may verify its authenticity by contacting the insurance company or agent listed on the certificate. They can confirm policy details and ensure there’s no lapse in coverage.

Changes in Policy: If there’s a significant change in the insurance policy, such as cancellation or a change in coverage limits, the insured should obtain a new COI to reflect these changes. Some contracts even require the insured to notify the other party of any significant changes or cancellations.

Expiry and Renewal: COIs have effective dates and expiration dates, which correspond to the policy’s period of coverage. If an insurance policy is renewed, a new COI may need to be issued for the new policy period.

No Alteration of Coverage: It’s crucial to understand that a COI is purely informational. It describes a policy but doesn’t alter, amend, or extend coverage. The actual terms, conditions, and exclusions of the policy prevail over the information provided in the COI.

In essence, a COI is a tool for transparency and assurance in various business interactions, ensuring that parties involved have taken steps to mitigate certain risks through insurance coverage.

Where do I get an insurance certificate?

A Certificate of Insurance (COI) is typically obtained from the insurance provider or the insurance agent/broker that arranged the policy. Here’s how you can get one:

Contact Your Insurance Agent/Broker: If you purchased insurance through an agent or broker, they are usually the first point of contact. Inform them that you need a COI, and they can typically generate and provide one for you.

Directly from the Insurance Company: If you bought your policy directly from an insurance company (without using an agent or broker), you should contact the company’s customer service department or your assigned representative. They will provide you with the necessary certificate.

Online Portals: Some insurance companies offer online portals or apps for their policyholders. Often, these platforms have features that allow users to request and download COIs directly.

Specific Requirements: When requesting a COI, be sure to communicate any specific requirements that the party requesting the COI has stipulated. For instance, they may want to be listed as a “Certificate Holder” or require certain verbiage or endorsements to be present.

Turnaround Time: While many insurance providers can generate a COI quickly, especially with modern electronic systems, it’s always a good idea to request the certificate well in advance of when you’ll need it, to account for any potential delays.

Remember, there should typically be no additional cost to obtain a standard COI. However, if you’re requesting additional insured status or specific endorsements, there might be associated fees or changes in premium. Always check with your insurance provider for details.