· Updated May 26, 2026

What Is a Certificate of Insurance (COI)? Guide with Examples | COI File

Learn what a certificate of insurance is, how to read an ACORD 25 form, what additional insured means, and how to verify vendor insurance compliance.

If you manage vendors or subcontractors, someone has probably asked you for a certificate of insurance. But what exactly is it, what does it prove, and what should you look for when you receive one?

This guide covers everything you need to know about certificates of insurance - from what they are to how to read them, verify them, and track them.

What Is a Certificate of Insurance?

A certificate of insurance (COI) is a standardized document that proves a business has active insurance coverage. It's a summary - not the full policy - that shows the key details of one or more insurance policies.

Think of it like a proof-of-insurance card, but for businesses. When a property manager or general contractor requires vendors to show proof of insurance before starting work, the vendor provides a COI.

The COI is typically issued by the vendor's insurance agent or broker. It summarizes:

  • Who is insured - the name and address of the policyholder
  • What types of insurance - general liability, workers' compensation, auto, umbrella, professional liability, etc.
  • Coverage limits - the maximum amount the insurer will pay per occurrence and in aggregate
  • Effective and expiration dates - when the policy starts and ends
  • Additional insured - whether another party is covered under the policy
  • Special endorsements - waivers of subrogation, primary/non-contributory clauses, etc.

The ACORD 25 Form

The most common COI format in the United States is the ACORD 25 form, named after the Association for Cooperative Operations Research and Development (ACORD), the nonprofit that standardizes insurance forms.

Here's what each section of an ACORD 25 form contains:

Top Section: Producer and Insured

  • Producer - the insurance agent or broker who issued the certificate
  • Insured - the name and address of the policyholder (the vendor you're hiring)

Mid Section: Coverage Details

This is a grid showing each policy type:

  • Type - General Liability, Workers' Compensation, Auto Liability, Umbrella, etc.
  • Policy Number - the unique identifier for each policy
  • Effective Date - when coverage starts
  • Expiration Date - when coverage ends
  • Limits - per occurrence, aggregate, and any sub-limits

Bottom Section: Description and Endorsements

  • Description of Operations - any special notes about what the policy covers
  • Certificate Holder - the entity requiring the COI (you, the property manager or contractor)
  • Additional Insured - whether the certificate holder is listed as additional insured on the policy
  • Waiver of Subrogation - whether the insurer waives the right to recover from the certificate holder
  • Primary/Non-Contributory - whether this policy is primary over any other insurance

What to Check on Every Certificate of Insurance

Receiving a COI isn't enough - you need to verify it. Here's what to check on every certificate:

  1. Coverage limits. Does the vendor carry the minimum required limits? For general liability, this is typically $1M per occurrence / $2M aggregate. Requirements vary by trade and by contract.
  2. Effective and expiration dates. Is the policy currently active? Does it cover the entire period the vendor will be working?
  3. Additional insured status. Is your organization listed as additional insured? If not, you may not be covered under the vendor's policy if an incident occurs.
  4. Waiver of subrogation. Does the policy include a waiver of subrogation in favor of the certificate holder? This prevents the vendor's insurer from suing you to recover costs after paying a claim.
  5. Primary/non-contributory. Is the vendor's policy primary over your own insurance? This means the vendor's insurance pays first in the event of a claim.
  6. Policy type. Does the vendor carry the right types of insurance? Most contracts require general liability and workers' compensation at minimum. Auto liability is needed if the vendor drives on your property.
  7. Named insured match. Does the name on the COI match the name of the vendor you're hiring? Mismatched names are a common red flag.
  8. Cancellation clause. The ACORD 25 states "should cancellation be intended, notice will be sent." Don't rely on this - follow up proactively.

Common COI Mistakes to Watch For

  • Expired certificates. The most common mistake. Always check the expiration date before filing a COI.
  • Missing additional insured. A COI that doesn't list you as additional insured provides no protection under the vendor's policy.
  • Insufficient coverage limits. A vendor may have insurance, but if the limits are too low, you're still exposed.
  • Wrong named insured. The legal entity on the COI must match the vendor's legal name. Variations like "ABC" vs "ABC Inc" can create coverage gaps.
  • Shadow insurance. Sometimes a COI shows a policy that was issued but later cancelled or modified. Always verify directly with the insurer if you have doubts.

How to Verify a Certificate of Insurance

Verification means confirming that the certificate accurately reflects the vendor's actual coverage. There are three levels:

  1. Visual inspection - check the dates, limits, additional insured status, and named insured. This takes 2-3 minutes per COI but is error-prone.
  2. Certificate holder verification - call the insurance agent listed on the COI to confirm the policy is active. This is more reliable but time-consuming.
  3. COI tracking software - upload the COI and let AI extract and verify the key fields automatically. This is the fastest and most reliable method.

For most property managers and contractors, visual inspection combined with COI tracking software is the most practical approach.

How to Track COIs

Once you've collected and verified COIs, you need to track them over time. This means:

  • Monitoring expiration dates and requesting updated certificates before they lapse
  • Verifying that renewed certificates maintain the same coverage limits and endorsements
  • Following up with vendors who don't respond to renewal requests
  • Maintaining records for audits and insurance claims

This is where most organizations struggle. Manual tracking in spreadsheets is time-consuming and error-prone. COI tracking software automates the entire process - from collecting certificates to sending expiration alerts to generating compliance reports.

What Happens If a COI Expires?

If a vendor's insurance expires and you don't have an updated certificate on file:

  • The vendor may be working without active insurance coverage on your property or project
  • You could be in breach of your own contracts, which typically require all vendors to maintain active coverage
  • If an incident occurs, you may be liable for damages that the vendor's insurance would have covered
  • Your own insurance premiums could increase

This is why automated expiration alerts - at 30, 14, and 7 days before expiration - are essential. They give you enough lead time to request an updated certificate before coverage lapses.

Frequently Asked Questions

A COI (Certificate of Insurance) is a document that proves a business has active insurance coverage. It summarizes the policy types, coverage limits, effective dates, and expiration dates. Property managers and contractors require COIs from vendors before they start work.
The most common format is the ACORD 25 form - a single-page document with sections for the insurer, insured, policy types, coverage limits, effective/expiration dates, and special endorsements like additional insured status.
A COI is issued by the vendor's insurance agent or broker, not by the vendor themselves. It's a snapshot of the vendor's insurance policy at a given point in time.
No. A COI is a summary document - it does not modify the insurance policy. It provides proof that a policy exists but does not grant rights or coverage. The actual policy is the governing document.
A COI is valid until the expiration date listed on the form. Most policies are annual, so COIs typically expire one year from the effective date. However, policies can be cancelled mid-term, so it's important to track actively, not just at renewal.
Additional insured means that another party (usually the property manager or general contractor) is listed on the vendor's policy and is covered under that policy. This is critical for liability protection - without it, you may not be covered if a vendor causes damage.

Sources & References

  • ACORD — The official standards body for the ACORD 25 certificate of insurance form. acord.org
  • International Risk Management Institute (IRMI) — Leading authority on certificates of insurance, additional insured requirements, and compliance verification. irmi.com
  • Nationwide — Business Insurance Basics — A guide to common business insurance types and certificate requirements. nationwide.com

Next Steps

Understanding certificates of insurance is the first step. Tracking them efficiently is the second. If you're ready to stop managing COIs in spreadsheets, try COI File free for up to 5 vendors.

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Firdaosh Bano

COI Compliance Specialist

Firdaosh Bano is a COI compliance specialist and the founder of COI File. She spent 6 years managing vendor compliance for commercial properties - tracking 2,000+ COIs across 150+ properties in spreadsheets before building the tool she wished she'd had. She writes about certificate of insurance compliance, vendor risk management, and making insurance tracking less painful for small teams.

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