COI vs Policy: What Certificates of Insurance Don’t Tell You (And How to Close the Risk Gap)

What Is a COI (and What Is It Missing)?

A Certificate of Insurance (COI) is a summary document issued by an insurance provider. It includes:

• Policyholder name
• Carrier and policy number
• Effective and expiration dates
• Types of coverage (CGL, Auto, Workers’ Comp, etc.)
• Coverage limits

But here’s the problem:
COIs don’t include exclusions, endorsements, or policy conditions—the things that actually determine if coverage applies when something goes wrong.

“A COI can look perfect, but the policy can exclude the exact type of work being done.”
– Jessica Lopes, Director of Risk and Compliance, Jones

Why Relying on a COI Alone Is Risky

If the subcontractor’s or tenant’s policy contains an exclusion, you may discover you were never truly covered. That means:

• Injury claims denied
• Property damage uncovered
• Full liability on the owner or GC

In a way, COIs give a false sense of security as it’s not even a legally biding document. The real level of protection lies in an insurance policy.

Related: Common Insurance Exclusions That Put Owners and GCs at Risk (Coming Soon)

Examples of Common Insurance Exclusions Hidden in Policies

These are real exclusions uncovered in policies that appeared “compliant” at the COI level:

Examples of Common Insurance Exclusions Hidden in Policies

These exclusions are rarely visible on COIs—but appear frequently in actual policies, often buried in endorsements. Here are the ones that catch most teams off guard:

1. EIFS: Blanket exclusion even if the vendor isn’t installing EIFS, and just working on the building.
2. Height limits: No coverage for work above 15 or 30 feet, common with scaffolding, windows, or roofing.
3. Labor law (action-over): Excludes liability for injury claims under NY or IL labor law—especially costly in GC contexts.
4. Location-based restrictions: Coverage may be excluded for entire regions (e.g., California, Colorado, or NYC boroughs).
5. Subcontractor restrictions: No coverage if the primary vendor subcontracts the work to others.
6. Trade-specific limitations: Coverage applies only to listed class codes or designated operations—everything else is excluded.

“We’ve seen subs with valid COIs whose policies exclude the entire job site.”
– Hisrain Reis, Policy Verification Manager at Jones.

COI vs. Policy: What’s the Real Difference?

Certificates of Insurance (COIs) are quick-reference summaries. Insurance policies are the actual legal contracts that determine coverage. Here’s how they compare:

• 📄 COI (Certificate of Insurance): Summary document used for tracking and proof of insurance
• 📜 Policy: Full legal contract issued by the insurer that determines what is—and isn’t—covered

Key Differences

• Coverage Details: COI provides summary; policy includes exclusions, endorsements, and full terms
• Legally Binding: Claims are settled based on the policy—not the COI
• Visibility of Risk: COI does not show hidden limitations like height, EIFS, or labor law exclusions
• Use in Compliance: COIs are useful for tracking; policies are essential for verifying real protection

For more information, read this post where we compiled common questions about COIs and insurance policies.

What Jones Offers (Beyond COI Tracking)

While most tools stop at COI collection, Jones provides:

• Automated COI collection + renewal alerts
• Full or partial policy reviews with exclusion audits
• Clear notes for internal approval, waiver, or rejection

For policy verification, Jones offers two approaches:

1. Partial Policy Review

Policies are verified against specific exclusions, clauses or provisions. Usually those are:

• Explosion, Collapse and Underground Hazard Exclusion
• New York Labor Law Exclusion
• Height/Gravity Exclusions
• Designated Work/Operations/Location Exclusions
• New York Five Borough Exclusion

Customers can pick up to 5 items (exclusions or endorsements) they want the Jones team to review.

2. Full Policy Review

Jones’ comprehensive Full Policy Verification service includes the following items for CGL and Umbrella policies’ review:

Whether you’re a GC trying to lower risk on job sites or a REIT onboarding tenants across multiple locations, policy review is the only way to verify real coverage.

Don’t Rely on a COI Alone—Check What It Doesn’t Show

“We’ve seen teams that thought they were 100% compliant—until they looked at the actual policies. The COI hid everything.”
– Jessica Lopes, Director of Risk & Compliance at Jones

Tired of Reviewing COIs and Endorsements Manually?

Jones automates the collection and review of COIs for property management companies, owner-operators, and general contractors across the US. Reach out to us via the form below to find out more about how Jones can help your organization manage your insurance documents.