What is a certificate of insurance (COI)?
A plain guide to the certificate of insurance: who issues it, what it proves and does not, ACORD 25 vs ACORD 28, what it costs, and how to request one.
Updated
A certificate of insurance (COI) is a one-page document that summarizes a business's insurance on the day it is issued: who is insured, which policies they carry, the insurers, policy numbers, dates, and limits. The business's insurance agent or broker issues it, usually at no charge. Clients use it to check that a contractor or vendor carries the coverage a contract requires. It is evidence of insurance, not the insurance itself.
Who issues a certificate
The agent or broker who placed the policies issues the certificate. On the form this is called the producer. Some insurers also let policyholders download one from an online portal. The business that needs to show coverage, the insured, asks for it, and it goes to the party that asked for proof, called the certificate holder.
What a certificate shows
In the US, the standard form for liability insurance is the ACORD 25, Certificate of Liability Insurance. ACORD is an insurance industry standards organization, and the layout is the same whichever insurer wrote the policies. It shows:
- The producer and the insured business.
- The insurers, labeled A through F.
- Each policy: general liability, auto, umbrella or excess, workers' compensation, and others.
- Policy numbers, effective and expiration dates, and limits.
- Columns for additional insured and waiver of subrogation.
- A free-text description of operations.
- The certificate holder and a cancellation box.
See how to read an ACORD 25, field by field.
What a certificate does not prove
The ACORD 25 states that it is issued as a matter of information only, confers no rights on the certificate holder, and does not amend, extend, or alter the coverage in the policies. In practice:
- It is a snapshot. It is accurate on the day it is issued. A policy can be cancelled or not renewed later, and the certificate will not change.
- A checked box is not an endorsement. A Y under additional insured is the agent's statement. The coverage comes from the endorsement on the policy. See certificate holder vs additional insured.
- It does not promise notice. The cancellation box says notice will be delivered in accordance with the policy provisions, which may mean no notice to the holder at all.
Ask for endorsement copies on large jobs, and watch for common red flags.
ACORD 25 vs ACORD 28
| Form | Name | Covers | Usually requested by |
|---|---|---|---|
| ACORD 25 | Certificate of Liability Insurance | General liability, auto, umbrella, workers' compensation | General contractors, property managers, and other clients of a vendor |
| ACORD 28 | Evidence of Commercial Property Insurance | The insured's own buildings, equipment, and business property | Lenders, landlords, and owners checking property coverage |
When someone asks a contractor or vendor for a COI, they almost always mean an ACORD 25. It answers the question: can this business pay if it injures someone or damages their property? An ACORD 28 answers a different question: is the property itself insured? Property managers often ask vendors for an ACORD 25 and tenants for both.
How much it costs and how long it takes
A certificate is usually free. It documents a policy the business already pays for, and agents generally issue as many as the insured needs. The real cost is the policy, plus any endorsement the certificate holder requires that the policy does not already include.
A routine certificate often comes back the same day or within a day or two. If the request needs a policy change, such as adding a specific additional insured or raising a limit, the agent has to go to the insurer, and that can take several business days. Timing varies by agency, so ask early.
How to request one
If you are the vendor, send your agent one email with:
- The certificate holder's exact legal name and mailing address.
- The project name and address.
- The insurance section of the contract, with the required limits and endorsements.
- Any wording the contract requires in the description of operations.
- The date you need it.
See getting a COI from your insurance agent for more.
If you are the client, put your requirements in writing and send them to the vendor before work starts. Ask for the certificate to come from the agent, and note each expiration date so you can ask for the renewal in time.
Check this automatically
ComplySub collects certificates through an upload link that needs no account, reads each ACORD 25, compares it with your requirements, and flags low limits, missing endorsements, a wrong holder, and expiring policies. It then reminds the vendor and their agent. General contractors and property managers can start free with up to five vendors; see pricing.
This guide is general information, not legal or insurance advice. Insurance and licensing rules vary by state, carrier, and contract; confirm what applies to you with your insurance professional, attorney, or licensing board.