To get a certificate of insurance (COI), you need an active business insurance policy. Ask your insurer or agent for a certificate, give them the requester’s name, address and coverage requirements, and review it before sending. Many online insurers let you create a COI instantly and for free.
What Is a Certificate of Insurance?
A certificate of insurance (COI) is a one-page document that proves your business has insurance. It summarizes your coverage without listing every policy detail. Clients, landlords and general contractors ask for one before they sign a contract, rent you a space or let you start work.
Most COIs in the United States use standard forms created by ACORD, an insurance industry standards organization. The most common is the ACORD 25, the Certificate of Liability Insurance, which shows general liability, commercial auto, umbrella and workers’ compensation coverage.
What a COI shows
- Named insured: your business name and address.
- Insurance companies: the insurers that issued each policy.
- Policy types and numbers: for example general liability or workers’ comp.
- Coverage limits: such as $1 million per occurrence and $2 million aggregate.
- Policy dates: when each policy starts and ends.
- Certificate holder: the person or company receiving the certificate.
- Description of operations: special wording, such as additional insured status for a project.
A COI is for information only. It does not change your policy or add coverage. Any change, like adding an additional insured, must be made through a policy endorsement.
Who Asks for a Certificate of Insurance?
- Clients and customers who hire contractors, consultants or freelancers.
- Landlords and property managers before you sign a commercial lease or move in.
- General contractors who hire subcontractors on a job site.
- Event venues, fairs and markets before you set up a booth.
- Lenders and franchisors that need proof you protect the business.
- Online platforms and marketplaces that require vendors to carry liability coverage.
How to Get a Certificate of Insurance: Step by Step
- Make sure you have the right policy. Most requests ask for general liability insurance. Some also ask for workers’ comp, commercial auto or professional liability.
- Get the requester’s details. Ask for their legal name, address, the minimum limits they need, and any special requirements in writing.
- Check for special wording. Look for requests like additional insured, waiver of subrogation or primary and non-contributory. These may need an endorsement.
- Request the COI. Contact your agent or insurer, or use your insurer’s online portal or app if it has one.
- Review it before sending. Confirm names, policy dates, limits and wording match the request.
- Send it and keep a copy. Save every certificate you issue and track renewal dates so you can send updated COIs on time.
Certificate Holder vs. Additional Insured
| Certificate holder | Additional insured | |
|---|---|---|
| What it means | Receives proof of your insurance | Is covered under your policy for claims tied to your work |
| How it is added | Named on the certificate | Added by a policy endorsement |
| Can make a claim on your policy? | No | Yes, within the endorsement’s terms |
| Extra cost? | Usually no | Sometimes |
Many clients and landlords ask to be both. Read the contract carefully and send the exact wording to your insurer so the endorsement matches what was promised.
How Long Does It Take and How Much Does It Cost?
Certificates are usually free. Digital insurers often let policyholders create a COI online in minutes. For example, NEXT Insurance says its customers can create customized certificates online, 24/7, at no additional cost. Traditional agents often issue simple certificates the same day, while requests with endorsements can take longer.
If you need a COI urgently for a new job or lease, request it as soon as you see the contract terms, not on the day work starts.
How to Verify a Certificate You Receive
If you hire contractors, ask them for a COI too. Check that the business name matches, the policy dates cover your project, and the limits meet your requirements. For larger jobs, call the insurer or agent listed on the certificate to confirm the policy is active, since certificates can be outdated or altered.
Need a certificate of insurance fast?
Get a business insurance quote from NEXT Insurance online. Policyholders can create and share certificates of insurance instantly from the app or website.
Sponsored link. Insurances.ltd may earn a commission if you buy through this link, at no extra cost to you.
Bottom Line
A certificate of insurance proves your business is covered. To get one, you need an active policy, the requester’s details and any special wording they require. Most insurers issue COIs for free, and many do it online in minutes. Review every certificate before you send it, and remember that additional insured status requires an endorsement, not just a name on the form.
Frequently asked questions
How long does it take to get a certificate of insurance?
With many online insurers you can download a certificate instantly or within minutes. Traditional agents often send one the same day, but complex requests with special wording or additional insureds can take one to a few business days.
Is a certificate of insurance free?
The certificate itself is usually free from your insurer or agent. Adding a party as an additional insured, or adding a waiver of subrogation, may require a policy endorsement that can carry an extra cost.
Can I get a certificate of insurance without a policy?
No. A COI is proof of an active policy, so you need coverage first. Creating or altering a certificate yourself is fraud and can lead to lost contracts, legal penalties and denied claims.
What is the difference between a certificate holder and an additional insured?
A certificate holder simply receives proof of your coverage. An additional insured is added to your policy by endorsement and can be covered for claims arising from your work for them. Being named as a certificate holder does not make someone an additional insured.
Can I get a COI for a one-day event or market?
Yes, if you have an active policy. Event venues and markets usually ask for general liability with specific limits and often want to be named as additional insured. If you do not have a policy yet, some insurers offer short-term event coverage.
Read also
You may also search for: business owner’s policy, workers’ compensation insurance, small business insurance
This article is for general information only and is not insurance or legal advice. Requirements, coverage and endorsements vary by state, contract and insurer. Speak with a licensed agent before relying on a certificate or endorsement.
