· Updated June 6, 2026

COI Insurance Requirements: The Complete Guide to Minimum Coverage by Trade and Industry

Stop guessing what insurance to require from vendors. This guide covers minimum coverage limits, required endorsements, and trade-specific requirements, so you can standardize compliance across every contract.

The most common question in vendor compliance is deceptively simple: "What insurance should I require?" The answer is not one-size-fits-all. A roofer working on a 12-story building needs fundamentally different coverage than a landscaper mowing a lawn. Require too little, and you are exposed. Require too much, and you drive away good vendors who cannot meet unnecessary thresholds, or pay inflated costs passed through to you.

This guide provides a structured framework for setting certificate of insurance requirements based on vendor type, trade risk level, and industry. Use it to standardize your vendor contracts, communicate requirements clearly, and verify compliance systematically, without over-requiring low-risk vendors or under-protecting against high-risk ones.

The Three-Tier Risk Framework

We categorize all vendor types into three risk tiers. Your requirements should scale with the tier:

Tier Risk Level Example Trades Typical Claims
Tier 1 Low Risk Janitorial, landscaping, pest control, painting (interior), routine maintenance <$50K typical claim value
Tier 2 Moderate Risk Electrical, plumbing, HVAC, general contracting, carpentry, flooring $50K-$500K typical claim value
Tier 3 High Risk Roofing, demolition, excavation, structural work, crane operations, hazardous materials $500K+ typical claim value; fatality risk

Use this framework as a starting point, then adjust based on your specific property types, contract requirements, and risk appetite. A roofing contractor working on a single-story residential property may justify Tier 2 requirements, while the same contractor working on a high-rise commercial building clearly needs Tier 3.

Core Insurance Requirements (All Tiers)

Regardless of vendor type, these four requirements apply to every vendor contract:

1. Commercial General Liability Insurance

The universal baseline. Covers third-party bodily injury and property damage caused by the vendor's operations. Every vendor, regardless of risk tier, must carry general liability insurance. The minimum limit scales by tier: $1M/$2M for Tier 1, $1M/$2M or $2M/$4M for Tier 2, and $2M/$4M minimum for Tier 3.

2. Workers' Compensation Insurance

Required by law in almost every state for any business with employees. Covers medical expenses and lost wages for workers injured on the job. Vendors must carry workers' comp at statutory limits for your state. Do not accept a vendor who "does not have employees" at face value, many misclassify workers as independent contractors to avoid this requirement. Verify.

3. Additional Insured Endorsement

The single most important requirement. The vendor must add your organization as an additional insured on their general liability policy via a formal endorsement, not just list you on the COI. For Tier 1 vendors, ongoing operations additional insured (CG 20 10 or equivalent) is sufficient. For Tiers 2 and 3, require both ongoing and completed operations additional insured (CG 20 37 or equivalent). This is non-negotiable: without it, the vendor's policy provides zero protection to your organization.

4. Waiver of Subrogation

Prevents the vendor's insurer from paying a claim and then suing you to recover their costs. Required on the general liability and workers' compensation policies. Standard for all tiers, the cost to add this endorsement is minimal (often $0-$100), and the protection it provides is significant.

Tier-Specific Insurance Requirements

Tier 1, Low-Risk Vendor Requirements

  • General Liability: $1,000,000 per occurrence / $2,000,000 general aggregate
  • Workers' Compensation: Statutory limits
  • Auto Liability: $1,000,000 combined single limit (if vendor operates vehicles on your property)
  • Additional Insured: CG 20 10 (ongoing operations) or equivalent
  • Waiver of Subrogation: Required on GL and WC policies
  • Primary & Non-Contributory: Recommended but not always required

Examples: Janitorial services, landscaping, pest control, interior painting, routine HVAC filter changes, window cleaning (low-rise), snow removal, carpet cleaning.

Tier 2, Moderate-Risk Vendor Requirements

  • General Liability: $1,000,000 per occurrence / $2,000,000 general aggregate (consider $2M/$4M for larger commercial projects)
  • Workers' Compensation: Statutory limits
  • Auto Liability: $1,000,000 combined single limit
  • Umbrella / Excess Liability: $2,000,000 (recommended)
  • Additional Insured: CG 20 37 (ongoing and completed operations) or equivalent
  • Waiver of Subrogation: Required on GL and WC policies
  • Primary & Non-Contributory: Required

Examples: Electrical contractors, plumbers, HVAC installation and repair, general contractors, carpenters, flooring installers, drywall, exterior painting (above two stories).

Tier 3, High-Risk Vendor Requirements

  • General Liability: $2,000,000 per occurrence / $4,000,000 general aggregate
  • Workers' Compensation: Statutory limits with $1,000,000 employers liability
  • Auto Liability: $1,000,000 combined single limit
  • Umbrella / Excess Liability: $5,000,000 minimum
  • Additional Insured: CG 20 37 (ongoing and completed operations) or equivalent
  • Waiver of Subrogation: Required on GL, WC, and auto policies
  • Primary & Non-Contributory: Required
  • Professional Liability: If design or engineering work is involved ($1M-$2M)
  • Pollution Liability: If hazardous materials are involved

Examples: Roofing contractors, demolition, excavation, structural steel, crane operators, hazardous materials remediation, fire suppression, elevator installation and maintenance.

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Required Endorsements, Beyond Basic Coverage

Coverage limits alone are not enough. The endorsements attached to the policy determine whether you are actually protected when a claim occurs. Here are the endorsements to require, by priority:

Additional Insured, CG 20 10 vs. CG 20 37

CG 20 10 covers claims arising from the vendor's ongoing operations only, work in progress. Once the vendor finishes and leaves, this coverage ends. CG 20 37 extends coverage to completed operations, claims arising after the vendor finishes work, when defects or latent damage surface. For construction, renovation, and any trade where failures can appear months after completion, CG 20 37 is essential. The cost difference to the vendor is typically $0-$200. The coverage difference for you can be millions.

Primary and Non-Contributory

Without this language, the vendor's insurer may argue that your own insurance should pay first or share the cost. Primary and non-contributory language (CG 20 01 or equivalent) makes the vendor's policy respond first, without contribution from your insurance. This preserves your coverage limits and loss history for claims that arise from your own operations, not your vendors'.

Waiver of Subrogation

Without this endorsement, the vendor's insurer can pay a claim and then sue you to recover their payment, a process called subrogation. You end up paying for a loss the vendor caused. The waiver blocks this. Require it on general liability and workers' compensation policies at minimum. Cost to the vendor: typically $0-$100. Protection to you: complete.

30-Day Cancellation Notice

While not a formal endorsement, specify in your contract that the vendor must instruct their insurer to provide 30 days' written notice to you before any policy cancellation, non-renewal, or material change. Note: many insurers will not agree to this for certificate holders or additional insureds. Do not rely on this clause as your sole protection, automated expiration monitoring is more reliable.

COI Requirements by Industry

Different industries impose different standards above and beyond the tier-based minimums:

Property Management

Standard Tier 1-2 requirements for most vendors, with Tier 3 for roofing, structural, and high-rise work. Key additions: require additional insured status that names both the property management company and the property owner. Multi-property portfolios should maintain a requirements matrix per property, different owners have different standards that must be tracked independently.

Construction (General Contractors)

All subcontractors fall into Tiers 2-3. Key additions beyond standard requirements: completed operations additional insured (CG 20 37 mandatory), primary and non-contributory language on all policies, waiver of subrogation on all policies, and per-project aggregate limits (not policy aggregate, a single project should not exhaust a subcontractor's total coverage). Many GCs also require subcontractors to carry builder's risk insurance and surety bonds, which fall outside standard COI tracking but are part of the broader compliance picture.

Facilities Management

Vendors range across all three tiers depending on building type and work scope. Healthcare facilities add professional liability ($1M-$3M) and cyber liability requirements for any vendor handling patient data or medical systems. Industrial facilities add pollution liability and equipment breakdown coverage. Educational facilities often require abuse and molestation coverage for any vendor interacting with students. Requirements must be building-specific, not portfolio-wide, to account for these variations.

Commercial Real Estate

Dual tracking burden: tenant COIs (driven by lease requirements) and vendor COIs (driven by management requirements). Tenant requirements typically mandate general liability ($1M/$2M), property insurance, and sometimes business interruption coverage, all with the property owner named as additional insured. Lease-specific requirement templates are essential; a retail tenant in a strip mall has different insurance needs than an industrial tenant in a warehouse.

Trade-Specific Coverage Requirements

Beyond the standard coverages, certain trades require specialized insurance. Here is a quick reference:

Trade Tier Min GL Umbrella Special Coverage
Electrician Tier 2 $1M/$2M $2M Professional liability if design work
Plumber Tier 2 $1M/$2M $2M Completed operations AI essential (water damage)
HVAC Contractor Tier 2 $1M/$2M $2M Professional liability; pollution liability for refrigerant
Roofer Tier 3 $2M/$4M $5M Completed operations AI critical; per-project aggregates
General Contractor Tier 2-3 $1M-$2M/$2M-$4M $2M-$5M Completed ops AI, PNC, waiver of subrogation on all policies
Landscaper Tier 1 $1M/$2M Not required Auto liability if using vehicles; pesticide applicator coverage
Janitorial Tier 1 $1M/$2M Not required Standard coverages sufficient
Elevator Maintenance Tier 3 $2M/$4M $5M Professional liability mandatory; high WC limits

Implementing COI Requirements in Your Organization

Setting requirements is the first step. Enforcing them consistently is where most organizations fail. Here is a practical implementation plan:

  1. Document requirements before you need them. Create a requirements matrix: one axis is vendor types/trades, the other is coverage types, limits, and endorsements. Store it in a shared, version-controlled document. Update it when contracts, regulations, or risk assessments change.
  2. Include requirements in vendor contracts, not separate emails. Insurance requirements should be a section of your standard vendor agreement, not an attachment or an email thread. This makes them legally enforceable and prevents vendors from claiming they never received them.
  3. Create a one-page requirements summary for vendors. Most vendors are not insurance experts. Give them a simple summary they can take to their agent: "Your insurance agent needs to issue an ACORD 25 showing: [list]. You must be named as additional insured using endorsement [form number]. Coverage must include waiver of subrogation and primary/non-contributory language."
  4. Collect COIs before work starts, no exceptions. This is the single most effective enforcement mechanism. No compliant COI on file, no keys, no site access, no start date. Enforce it consistently with every vendor, from the one-person landscaping crew to the national HVAC contractor. One exception creates a precedent that undermines the entire program.
  5. Use COI tracking software for automated verification. Manual verification against your requirements matrix takes 10-15 minutes per certificate. At 50 vendors, that is 8-12 hours per cycle. COI tracking software with AI extraction and automated requirement matching reduces this to under one minute per certificate, and catches discrepancies your team will miss.
  6. Audit quarterly. Even with upfront verification, run a full portfolio compliance audit every quarter. Certificates expire. Policies are cancelled mid-term. Vendors switch carriers and forget to send updated COIs. A quarterly audit catches gaps within 90 days instead of waiting for the annual renewal cycle, or the claim that reveals the gap.

COI File automates requirement enforcement across your entire vendor portfolio. Define requirements once, per vendor type or per property, and every uploaded certificate is automatically checked for compliance. Start free today with up to 5 vendors.

Frequently Asked Questions

At minimum, require general liability insurance of $1,000,000 per occurrence and $2,000,000 general aggregate, workers' compensation at statutory limits, and the additional insured endorsement naming your organization. This baseline covers 80% of vendor types for property management and facilities work. Higher-risk trades (construction, roofing, demolition) should carry $2M/$4M general liability and $5M umbrella. The critical requirement beyond coverage limits is the additional insured endorsement, without it, the vendor's policy provides no protection to your organization regardless of coverage amounts.
Yes, significantly. A landscaper's requirements differ from a roofer's, and both differ from an IT consultant's. The core principle: match requirements to the risk the vendor creates for your organization. Low-risk services (janitorial, landscaping) typically need general liability, workers' comp, and auto liability. Moderate-risk trades (electrical, plumbing, HVAC) need the same plus higher limits and professional liability in some cases. High-risk contractors (roofing, demolition, excavation) need maximum limits plus umbrella coverage and completed operations additional insured status. Using the same requirements for all vendor types either under-protects you against high-risk vendors or over-requires low-risk vendors, driving away good contractors who cannot meet unnecessary thresholds.
The additional insured requirement means the vendor must add your organization to their insurance policy via a formal endorsement, not just list you on the certificate. This is the single most important requirement because it is the only one that gives you actual rights under the vendor's policy. Without it, all the coverage limits in the world do not protect you. You cannot file a claim, you cannot receive defense, and you cannot collect a settlement. Every vendor contract should require additional insured status, and every COI you receive should be verified to confirm the endorsement exists, not just that it is noted on the certificate.
Include insurance requirements in your vendor agreement or contract, not in a separate email or verbal instruction. The contract should specify: coverage types required, minimum limits per type, additional insured requirements with the specific endorsement form number (CG 20 37 preferred), waiver of subrogation requirements, primary and non-contributory language, and a clause stating that work cannot begin until compliant COIs are received. Provide a one-page insurance requirements summary that vendors can take directly to their insurance agent, this eliminates back-and-forth where the vendor's agent guesses at what you need. COI tracking software with a vendor portal can present these requirements automatically when the vendor uploads their certificate.
For most low-risk vendors (janitorial, landscaping, routine maintenance), umbrella coverage is not necessary, $1M/$2M general liability is adequate. For moderate-risk trades (electrical, plumbing, HVAC) on commercial projects, $2M umbrella is increasingly standard. For construction, roofing, demolition, and any work on occupied buildings, require $5M umbrella. The decision comes down to the worst-case-scenario cost of an incident: if a vendor's work could cause a $3M+ loss (structural damage, multiple injuries, business interruption), umbrella coverage should be required. Umbrella coverage typically adds $500-$2,000 per year to a vendor's insurance cost, reasonable for higher-risk work but potentially burdensome for small, low-risk service providers.
Property management typically requires general liability ($1M/$2M), workers' comp, auto liability, and additional insured for all vendors. Construction requires higher limits ($2M/$4M GL, $5M umbrella), completed operations additional insured, waiver of subrogation, and primary/non-contributory language. Healthcare facilities require professional liability and cyber liability on top of standard coverages. Commercial real estate requires tenant COIs (per lease terms) plus vendor COIs (per management requirements). Government and municipal contracts often have detailed, prescriptive requirements that vendors must match exactly. The key is to document requirements by industry and vendor type before you need them, not after an incident reveals a coverage gap.

Sources & References

  • ACORD, Official standards for certificate of insurance forms and issuance guidelines. acord.org
  • IRMI, Contractual Risk Transfer, Expert guidance on insurance requirements, additional insured endorsements, and risk transfer strategy. irmi.com
  • NAIC, State-by-state insurance regulations and minimum coverage requirements. naic.org
  • ISO, Commercial Insurance Forms, Standardized policy forms and endorsement language used across the U.S. insurance industry. verisk.com/insurance
  • OSHA, Workplace safety regulations that drive contractor insurance requirements and compliance standards. osha.gov
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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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