What Is a COI and When Would You Need One? 

Understanding insurance documentation is essential for protecting your business and building trust with clients and partners. One of the most common documents requested in business transactions is a certificate of insurance (COI). Understanding how COIs work and providing them as necessary can be crucial for prospecting opportunities and maintaining business relationships.

What Is a Certificate of Insurance?

A COI is a type of document issued by your carrier that summarizes key details about your various business insurance policies. It typically includes information such as the type of coverage, policy limits, effective dates and the name of the insured. While a COI is not the insurance policy itself, it serves as evidence that you have active coverage in place.

When Would You Need a COI?

There are several situations where your company may be required to provide a copy of a COI. Specifically, other parties may request these documents for the following business-related scenarios:

• Signing contracts with clients or vendors who require proof of insurance before work begins
• Leasing commercial property, as landlords often request a COI to confirm liability coverage
• Working as a contractor or subcontractor on construction projects, where general contractors or project owners need assurance of your coverage
• Participating in events, trade shows or markets that require vendors to show proof of insurance
• Securing business licenses or permits, as some municipalities may require a COI as part of the application process

Why Are They Important?

A COI can help establish credibility and trust in business relationships. It demonstrates that your business is properly insured, which can be a deciding factor in winning contracts or partnerships. Additionally, providing a COI can help protect your business from liability disputes and verify compliance with legal or contractual requirements.

How Our Team Can Help

At Home Loan Insurance, we make it easy for our clients to promptly obtain and retain COIs. Our team can help analyze your situation and assess your needs as they relate to these essential documents. If you have questions about COIs or other insurance-related matters, we’re here to help. Contact us today.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.