A certificate of insurance (COI) is a document — most commonly the standardized ACORD 25 form — that summarizes an insurance policy as proof that coverage is in force. It shows the insured's name, the carrier, policy numbers, coverage types, limits, and effective dates. A COI is evidence of insurance, not an insurance contract: it confers no coverage by itself and does not change the policy's terms.
How it works
COIs grease the wheels of business: before a contractor steps on a job site, a vendor signs a lease, or a landlord's tenant moves in, the other party wants proof of insurance. The insured asks their agent, who issues the certificate — usually same-day and at no charge — naming the requesting party as the certificate holder. Where a contract requires it, the requester may also be listed as an additional insured, which (unlike merely holding a certificate) extends certain protections under the policy via endorsement.
Example (illustrative numbers): A landscaping company bids a commercial contract that requires general liability coverage of $1,000,000 per occurrence and $2,000,000 aggregate, plus the property manager named as additional insured. The company's agent issues an ACORD 25 showing the carrier, policy number, those limits, and the effective dates, with the additional insured endorsement referenced. The property manager files the COI, the crew starts work. Numbers are illustrative contract requirements only.
Why it matters for your policy
COIs sit at the center of everyday commercial risk transfer, and a few distinctions prevent expensive misunderstandings:
- A COI is a snapshot, not a promise: It reflects coverage as of the issue date. The policy can be cancelled or changed afterward; the certificate's fine print disclaims any obligation to the holder. Businesses that rely on COIs should track expiration dates and request renewals.
- Certificate holder ≠ additional insured: Holding a certificate gives you information; being an additional insured gives you rights under the policy. Contracts should specify which is required, and the endorsement — not just the COI checkbox — is what delivers it.
- Never alter a COI: Editing a certificate to show limits or dates that don't exist is fraud. If a contract requires higher limits than you carry, the fix is buying the coverage.
Requirements come from contracts, not from insurance law, so what your COI must show varies by counterparty.
Have questions about getting COIs issued fast for your contracts? Better Choice Insurance Group is an independent agency based in St. Charles, Illinois, licensed in 14 states. We’ll explain your options in plain English and compare coverage across our carriers — free, no pressure.
Related terms
- Liability Coverage — The coverage most COIs are issued to prove.
- Insurance Binder — Temporary evidence that coverage is bound before the policy issues.
- Declarations Page — The policy's own summary page — different from a COI issued to a third party.
- Umbrella Insurance — Excess liability that COIs often list to meet contract limits.
- Premium — What you pay for the coverage a COI documents.
Frequently Asked Questions
How do I get a certificate of insurance?
Ask your insurance agent. Provide the certificate holder's exact legal name and address, plus any contract language about required limits or additional insured status. Agencies typically issue COIs the same day at no charge - it is routine service work, so ask as early as your counterparty raises the requirement.
Is a certificate of insurance the same as an insurance policy?
No. The COI is a one-page summary issued as evidence that a policy exists; the policy is the actual contract that determines coverage. If the certificate and the policy conflict, the policy controls. That is also why sophisticated counterparties ask for endorsement copies, not just certificates, when additional insured status matters.
Why does my landlord or client want to be an additional insured instead of just a certificate holder?
A certificate holder merely receives proof of your coverage. An additional insured is actually extended protection under your policy - if they are sued because of your work or your use of their premises, your policy can defend them. That requires an endorsement to your policy, not just their name on the certificate.
Last reviewed: August 2026 · Reviewed by Evan Larson, Licensed Insurance Agent