A Certificate of Insurance (COI) is a document issued by an insurance company or broker that verifies the existence of an insurance policy and summarizes its key details. It is like an auto insurance ID card, but instead of summarizing auto insurance coverage, it summarizes business insurance coverage. A COI is used to prove that a business has insurance coverage and is often required by clients or others with whom the business does business.
Here are some key points to know about COIs:
- A COI typically includes the policyholders name, the name of the carrier, the policy number, coverage limits, and the policy expiration date.
- COIs are most common with some kinds of business insurance, such as liability insurance, and with auto insurance.
- COIs are used in situations where liability and significant losses are of concern and require a COI, which is in most business contexts.
- Small business owners and contractors often have a COI that proves they have insurance that protects against liability for workplace accidents or injuries.
- COIs can be included with proposals or affixed to a clipboard to prove that a business is insured.
- COIs can help build confidence in a business and may give the business an edge over competitors.
- COIs are essential for any industry that utilizes contracted labor.
- COIs are used to transfer loss to a third partys insurer in the event that something goes wrong.
If you need a COI, you can obtain one from your insurance company or agent. In some cases, this is done automatically when you take out a new policy. If your insurance company does not automatically issue a COI or you need a revised copy, you can request one.
