Customers First Insurance Group

Here’s the main takeaway with Certificates of Insurance:

A COI is useful, but it is not a guarantee.

It may show insurance information at one point in time, but it does not automatically prove that you are protected, that the work is covered, that contract requirements are satisfied, or that a claim will be paid.

The certificate shows information.
The policy determines coverage.

Don’t just collect certificates. Understand what you need them to prove.

When someone sends you a Certificate of Insurance, don’t just file it away and assume everything is handled.

Depending on the situation, you may need to check the named insured, active dates, coverage types, limits, additional insured status, required endorsements, workers’ compensation, commercial auto, umbrella coverage, and whether the policy matches the work being done.

The big question is not just, “Did they send me a COI?”

The better question is, “What do I need this certificate to prove?”

A lot of people assume that if they are listed on a Certificate of Insurance, they will automatically be notified if the policy cancels.

That may not be true.

A COI may include cancellation wording, but the certificate itself usually does not create rights that are not actually in the policy. If the policy does not require notice to you, the COI may not magically create that obligation.

A COI is a snapshot. It is not a guarantee of future coverage.

A $1 million insurance limit can sound like a lot — but is it enough for the actual risk?

That depends on the work being done, the contract requirements, and the potential exposure. A contractor painting one office wall is very different from someone doing roofing, excavation, electrical work, or a large commercial project.

When reviewing a Certificate of Insurance, don’t just ask, “Is there a limit?”

Ask, “Is this the right limit for this risk?”