Certificate of Insurance (COI)
Need proof of insurance for your small business? Getting a certificate of insurance is easy for policyholders with Progressive Commercial. Simply send a request, and we'll provide a COI so your clients and partners can verify your coverage, and you can get started on your next project.
What is a certificate of insurance?
A certificate of insurance is a document that proves you have a business insurance policy. It's also known as a certificate of liability insurance or proof of insurance. A COI is typically one page long and summarizes your coverage, including the policy's effective date, insurance limits, and more.
Clients, landlords, and others might require a certificate of insurance before doing business with you. You can ask your insurance company for a COI or have one sent directly to the requestor.
Why are COIs important for businesses?
COIs are important to clients and vendors because they verify that you're insured and that all parties are financially protected. In fact, many companies won't work with you if you can't provide an insurance certificate for your business. Having a COI is critical to demonstrating responsibility as a small business owner.
If you partner with other companies, be sure to ask them for proof of coverage before starting a project. This step helps confirm that your business will be protected from potential liabilities and that you're working with a reliable team.
COIs are important for establishing:
- Financial trustworthiness: COIs build trust and show that each business is responsible and financially prepared to handle potential issues.
- Risk protection: Confirming that every party in a business agreement is insured helps companies manage financial risks and liabilities. It also helps clarify who would be responsible in case of an accident.
- Legal compliance: Insurance is sometimes required by certain states or professions. It's also a common condition in contracts. A COI ensures that businesses are meeting these requirements.
Progressive Commercial and the trusted insurers in our network can provide COIs quickly to keep you in good standing as a small business owner.
What does a certificate of insurance include?
A certificate of insurance contains basic information about your coverage, but it's not the actual policy. It names you as the policyholder and includes the following details:
- Producer: Insurance agent or broker.
- Contact: Agent or broker's name, phone number, and email.
- Insured: Company or person who holds the policy.
- Insurer: Insurance company.
- Coverages: Specific types of insurance and whether there are additional insureds. The following
coverages will be identified and filled in with specific details:
- Commercial general liability
- Automobile liability
- Umbrella liability
- Excess liability
- Workers' comp and employers' liability
- Policy numbers: Policy number for each type of insurance.
- Effective dates: Start and expiration dates for coverage.
- Limits: Policy limits by coverage, including policy limits for property damage, medical payments, and personal and advertising injury. Any exclusions should also be noted.
- Certificate holder: The business that requested the COI.
After receiving your COI, you'll want to verify this information against your policy documents.
Types of certificates of insurance
You can request a certificate of insurance for any type of commercial coverage. Some common ones your clients might ask for include:
Certificate of liability insurance
A certificate of liability insurance confirms you have coverage for incidents caused by your work and services. You can get COIs for the following types of liability policies:
- General liability: A certificate of general liability insurance proves that you have protection against third-party bodily injury and property damage.
- Professional liability: A professional liability insurance COI outlines your business's coverage against mistakes related to your advice and services.
- Business owners policy (BOP): A certificate of BOP insurance shows that a business has both liability and property insurance coverages.
Certificate of workers' compensation insurance
Most states require businesses with employees to have workers' compensation insurance, which covers medical expenses and a portion of lost wages for work-related injuries and illnesses.
A certificate of workers' compensation insurance demonstrates that you have coverage and comply with the law. Explore workers' compensation insurance requirements by state.
Certificate of auto liability insurance
A certificate of auto liability insurance proves that you have commercial auto coverage for accidents involving your work vehicles. If you finance your vehicle, the leasing company will probably ask to be added to your policy and COI as an additional insured.
Vendor COI
Vendors who provide services to other companies should be used to providing certificates of liability insurance. If your business works with outside companies, requesting and managing vendor COIs is crucial to protecting yourself financially.
What is an additional insured?
An additional insured is someone you extend coverage to by listing them on your insurance policy and certificate of insurance. This endorsement states the coverage type and limits the additional insured is entitled to in the event of a claim.
For example, a general contractor might ask a subcontractor to name them as an additional insured before starting a job. This covers the general contractor if a client sues for the subcontractor's mistake.
When does a business need to provide a certificate of insurance?
A business might need to provide a certificate of insurance when signing contracts, leasing commercial vehicles and property, and working as a contractor or subcontractor.
Beginning work with clients
Depending on the industry, you might need a general or professional liability COI before working with clients.
Example: A client asks to see an accounting firm's certificate of insurance to confirm that it has professional liability coverage. If the accounting business makes a mistake that causes the client to lose money, its insurance can pay for the damages.
Leasing commercial property
If you rent commercial property, the owner might require a certificate of BOP insurance as proof that your business has coverage in case of property damage or personal injury.
Example: A property management company asks a potential tenant for their COI before signing a lease. This step protects the landlord by proving the tenant has coverage for on-site liability, such as a fire or a customer's slip and fall.
Working as a contractor or subcontractor
Working as a contractor or subcontractor
Contractors and subcontractors might need to provide COIs for general liability or workers' compensation insurance. These COIs prove they have protection for work-related accidents and employee claims.
Example: A municipality is hiring a construction company to complete road work and asks to see a COI. Confirming the construction company's insurance coverage is important because it can protect the city from liability if the contractor causes an accident.
Learn more about COIs for contractors.
How does a COI work?
COIs verify business insurance coverage and help clarify the responsibilities of companies that work together on projects. For instance, if a vendor's employee damages your property, their insurance would typically cover the cost. But if you didn't verify their liability insurance by requesting a COI, you could pay for the damage out of pocket.
How much does a certificate of insurance cost?
COIs are provided to policyholders for free.
How long does it take to get a COI?
You can usually get a COI from your insurer within a day or two. Some policies with Progressive Commercial can be accessed quickly through your online account portal.
How often should a COI be updated?
A certificate of insurance should be updated when you make changes to your policy. If you add coverage, update policy limits, or revise endorsements, you should request new COIs for certificate holders or additional insureds. Policy renewal is another time to update COIs to keep dates and other details accurate.
What's the difference between a certificate holder vs. additional insured?
The certificate holder is the business or entity that requested your proof of insurance. They don't have any rights to make claims under your policy. An additional insured is someone who's been added to the insurance policy, often as part of a contractual agreement, and is covered for certain liabilities under it.
What is an ACORD certificate of insurance?
The certificate holder is the business or entity that requested your proof of insurance. They don't have any rights to make claims under your policy. An additional insured is someone who's been added to the insurance policy, often as part of a contractual agreement, and is covered for certain liabilities under it.
What is an ACORD certificate of insurance?
An ACORD COI is a commonly used type of COI. ACORD is the organization that manages and standardizes insurance forms for the industry.
How to get a certificate of insurance
You'll have to reach out to your insurer to get a certificate of insurance. Luckily, Progressive Commercial makes this process easy. To request a certificate of insurance, call 1-800-444-4487 to speak with an agent. For certain policies, you may also be able to complete the process online.
