Whether you’re a contractor bidding on a job or a client hiring someone to work on your property, the term Certificate of Insurance – or COI – will likely come up. While it’s just a one-page document, it carries serious weight in the world of commercial insurance. It provides peace of mind, helps manage risk, and is often a requirement before work can even begin.
So what exactly is a COI? And when should you ask for one, or be prepared to provide one? Let’s break it down.
What Is a Certificate of Insurance?
A Certificate of Insurance is a formal document issued by an insurance provider. It summarizes the details of a business’s or contractor’s insurance policy, including the type of coverage in place, policy limits, and the coverage period. It’s not the full insurance policy – it’s more like proof of coverage that’s quick to read and easy to share.
For clients or businesses hiring others, it serves as confirmation that the contractor or service provider is adequately insured. And for businesses doing the work, it’s a professional and often necessary way to show that you’re covered if something goes wrong.
From the Contractor’s Perspective: Why You Might Need to Provide a COI
If you run a business, especially in trades, construction, or any service that involves working on someone else’s property – expect to be asked for a COI regularly.
Let’s say you’re a general contractor hired to build a deck, or a landscaper working on a large commercial site. Before you start, your client may ask for proof that you carry general liability insurance. Why? Because accidents happen. A COI reassures your client that if there’s property damage, injury, or other liability issues, your policy will respond – not theirs.
It’s also common for project owners, municipalities, and commercial property managers to require that you list them as an “Additional Insured” on the certificate. This provides them with added protection during the job, and it’s something your broker can easily accommodate when issuing the COI.
Being proactive with your COIs shows professionalism, builds trust, and often speeds up contract approvals.
From the Client’s Perspective: Why You Should Request a COI
Hiring a contractor, vendor, or third-party service provider? Asking for a Certificate of Insurance is a smart, and often essential, step in protecting yourself or your business.
Imagine hiring a roofer who accidentally damages your neighbour’s property. Without proper coverage, you could find yourself caught in a legal mess. Requesting a COI confirms that the business you’re working with has active insurance, so if a claim arises, it doesn’t fall on you.
This is especially important for:
- Homeowners hiring independent contractors for renovations or repairs
- Event organizers bringing in vendors or entertainers
- Businesses outsourcing cleaning, delivery, snow removal, or other services
Always ensure the COI is current, reflects the work being done, and includes sufficient liability limits for the risk involved.
How to Get or Provide a COI
If you’re a business owner or contractor, your insurance broker can quickly issue a COI upon request. All you need to do is provide the name and contact information of the person or company requesting it, and your broker can send it directly to them, or to you for forwarding.
If you’re on the receiving end and need to verify a contractor’s insurance, ask them to have their broker send you the certificate. It’s a standard request and one that most insured businesses are accustomed to handling.
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A Certificate of Insurance may seem like a small piece of paper, but it plays a big role in risk management and professionalism. Whether you’re a contractor looking to win new work or a client protecting your interests, having a COI on file is a smart, simple step that benefits everyone involved.
Need help issuing or understanding a COI? Our commercial insurance team is here to help you navigate requirements, update your coverage, and keep your business protected and compliant. Connect with a broker today, or give us a call for more information.
