What is a Certificate of Liability Insurance (COI)?

A Certificate of Liability Insurance (often called a COI) is a standardized document issued by an insurance company that proves a business or individual has active insurance coverage.

Think of it like an insurance “receipt”, except instead of showing you paid for something, it shows that your business has protection against risks like property damage, injuries, or lawsuits.

In the world of commercial real estate, construction, and property management, a COI is non-negotiable. Without it, vendors, tenants, and subcontractors can’t work on-site, or get paid.”

Why Do COIs Matter So Much?

Trust is Invisible, Until Something Goes Wrong

Every business relationship starts with good intentions. Vendors promise professionalism. Contractors promise safe work. Tenants promise to take care of the space.

But in property management, real estate, and construction, good intentions aren’t enough.

Buildings flood. Ladders slip. Fire alarms go off. Equipment breaks. And when they do, the question every owner, property manager, and general contractor faces is simple:

“Who’s paying for this?”

It’s a common misconception that COIs provide protection or risk-transfer. In truth, a COI is only a snapshot. It confirms a policy exists, but says nothing about its quality, terms, or enforceability. Without a signed contract, additional insured endorsements, and careful policy review, you’re still at risk.

Still, COIs are essential. They’re the first step in a broader insurance compliance process. They provide a starting point for verifying coverage and enforcing insurance terms, but they are not enough on their own.

Related: COI vs Policy – How to Close Insurance Compliance Gaps and Reduce Risk

Note: Ready to explore how Jones can improve your COI management? Talk to our team of experts today!

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For landlords, owners, general contractors, and property managers, COIs are the first step in making sure you’re protected against worst-case scenarios like:

  • Property damage caused by a vendor or subcontractor
  • On-site injuries
  • Lawsuits or claims
  • Insurance gaps that expose your organization to risk

Without an up-to-date COI, you could end up financially responsible for damages caused by someone else.

Real World Example

A property manager hired a cleaning company for common area services. The vendor’s COI expired without notice. Later, a worker slipped and fell, but their lapsed insurance left the building owner footing the medical bills.

COIs aren’t just a box to check. They help ensure vendors aren’t working without active insurance.

What Information Does a Certificate of Liability Insurance Include?

Here’s what you’ll typically find on a COI (usually the ACORD 25 form):

Named Insured

This is the person or entity holding the policy. If the name listed doesn’t match the vendor you hired, that’s a red flag.

Insurance Carriers

Reputable carriers matter. Insurance is only as good as the company behind it.

Coverage Types

Coverage needs to match the work being performed:

  • General Liability: The foundation of vendor insurance.
  • Workers’ Compensation: Mandatory for vendors with employees.
  • Commercial Auto: Required for vendors using vehicles.
  • Umbrella or Excess Liability: Crucial for high-risk work.
  • Professional Liability (E&O): For design professionals.

Policy Numbers

These are unique identifiers assigned by the insurance carrier to each individual policy listed. They allow you (or your compliance team) to confirm authenticity directly with the insurer if needed. Policy numbers are essential for audits, legal disputes, or when checking the policy’s full terms. If a number is missing or appears generic across multiple vendors, that’s a red flag.

Coverage Limits

These define the maximum dollar amount the insurer will pay for a covered claim. If a vendor’s policy shows $1M per occurrence and $2M aggregate, that sets the ceiling for what the policy will pay, even if the damages exceed it. Always compare the limits on the COI to the minimums required in your contract. Low limits often signal insufficient protection for the risk involved.

Effective & Expiration Dates

These indicate the policy’s coverage window. If a COI is expired, there is no guarantee of active coverage. This is the most common risk in COI tracking. Work performed outside of this date range may not be covered, which can lead to massive liability exposure. Always check that the COI is current and set up systems to track upcoming expirations.

Certificate Holder 

This is the party receiving the certificate – typically your company or the entity requesting insurance. However, the Certificate Holder box is informational only. It does not grant any rights to the policy, nor does it imply coverage. Many companies mistakenly assume they’re protected simply because they appear in this section, but without “Additional Insured” status and endorsements, that’s not the case.

Additional Insured Language

Extends certain protections to your company. Indicates whether your organization has been formally added to the vendor’s policy as an “additional insured”. This is one of the most critical provisions on a COI because it means your company may receive direct protection under their liability policy. If something goes wrong – for example, a subcontractor causes property damage – you can tender the claim under their policy instead of your own. However, a checkbox alone isn’t enough: you need to verify that the proper endorsement has been issued by the insurer and that it matches your contract terms.

Who Needs to Provide a Certificate of Liability Insurance?

Not every vendor or partner your business works with will need a certificate of liability insurance. But the general rule of thumb is simple:

If a third party has the potential to cause property damage, bodily injury, or financial liability on your property — they should be providing a certificate of liability insurance.

Here are the most common groups required to provide this documentation, and why.

Vendors (Cleaning, Landscaping, Security, Maintenance)

Everyday vendors might seem low-risk, until they’re not.

  • A janitorial company accidentally causes water damage.
  • A landscaping crew leaves debris that leads to tenant injury.
  • A security company’s actions (or inactions) create liability.

Tenants

Many commercial lease agreements require tenants to carry their own insurance, and provide a certificate of liability insurance proving it.

Why?

  • Tenants may have employees, customers, or vendors on-site.
  • Their operations could lead to damage (e.g., water leaks, fires, equipment failure).
  • Their liability should not become your liability.

Especially in retail, industrial, office or mixed-use spaces, tenant-provided COIs are a standard risk management best practice.

Subcontractors

If you’re working with a general contractor, they may handle the COIs for their subcontractors. But if you hire subs directly – plumbers, electricians, roofers, HVAC specialists – you must collect their certificates of liability insurance.

Subcontractors perform specialized, often higher-risk work. Their mistakes can be expensive.

Examples include:

  • Electrical fires
  • Plumbing leaks
  • Improper installations causing future damage

Construction Teams

Any time construction happens on your property, big or small, certificates of liability insurance are non-negotiable.

This includes:

  • Renovations
  • Tenant improvements
  • Ground-up construction
  • Emergency repairs

Construction sites are dynamic risk environments. Workers, heavy equipment, structural changes — all increase the likelihood of incidents that could lead to claims.

Event Organizers

Temporary events create temporary risks.

Whether it’s a tenant hosting a holiday market in the lobby or a third-party renting space for a public event — you should be verifying COIs to ensure proper insurance coverage.

Think:

  • Trip and fall injuries
  • Property damage from equipment
  • Food service liability
  • Crowd-related incidents

Consultants or Service Providers

Even non-physical work can carry risk.

Marketing agencies, IT consultants, and other professional service providers may need a certificate of liability insurance, especially if they work on-site or if their work could trigger liability.

Examples:

  • IT vendors handling sensitive tenant data
  • Design consultants installing signage
  • Photographers working in public tenant spaces

The Bottom Line

If someone is operating on your property, interacting with your assets, tenants, or staff, and has the potential to cause loss, you should require a certificate of liability insurance.

It’s not about assuming the worst. It’s about protecting your business from the unexpected.

Common Types of Liability Insurance on a COI

There are several types of insurance that may appear on a Certificate of Liability Insurance. Each plays a different role in protecting against specific categories of risk. Understanding these can help you evaluate whether a vendor or tenant has appropriate coverage for the work they’re performing.

  1. General Liability Insurance
     This is the foundation of most vendor insurance programs. It protects against third-party bodily injury, property damage, and personal or advertising injury claims.
     Example: A general contractor accidentally damages elevator doors during a lobby renovation. General liability coverage would apply to the repair costs.
  2. Workers’ Compensation
     This covers medical expenses and lost wages if an employee is injured while performing their job. It’s required in nearly every state.
     Example: A janitorial worker falls while mopping a stairwell in a residential building. Workers’ compensation would cover their medical bills and recovery.
  3. Auto Liability Insurance
     This provides coverage for bodily injury and property damage caused by vehicles used in the course of business.
     Example: A landscaping company’s truck strikes a parked car while entering the underground garage. Auto liability would cover the damage.
  4. Umbrella Liability
     Also called excess liability, this policy extends coverage beyond the limits of the vendor’s other liability policies. It’s especially important for high-risk activities or larger contracts.
     Example: A contractor’s scaffold collapse causes $2M in damage, but their general liability policy only covers $1M. The umbrella policy covers the remaining costs.
  5. Professional Liability Insurance (Errors & Omissions or E&O)
     This covers claims arising from mistakes, negligence, or failure to perform professional duties.
     Example: An architect’s design flaw leads to a delay in permitting and costly change orders. E&O insurance would typically cover those financial impacts.

How to Get a Certificate of Liability Insurance (COI)

If you’re a vendor or subcontractor:

  1. Contact your insurance agent.
  2. Request a COI with the required limits.
  3. Ensure your client (property manager, GC, owner) is listed as Certificate Holder.
  4. Include Additional Insured wording if requested.
  5. Send the COI directly to your client.

If you’re collecting COIs:

  • Request it BEFORE work starts.
  • Check it for accuracy (we’ll cover how next).
  • Track expiration dates.
  • Automate renewal reminders if possible.

The Most Common Mistakes Companies Make with Certificates of Liability Insurance

Mistake 1: Treating the Certificate of Liability Insurance as a Checkbox

Getting a Certificate of Liability Insurance doesn’t mean you’re protected.

Mistake 2: Accepting Expired Certificates of Liability Insurance

Insurance policies renew. Expired documents expose you.

Mistake 3: Missing Contractual Protections

A Certificate of Liability Insurance alone isn’t enough.

Mistake 4: Applying One-Size-Fits-All Insurance Requirements

Customize requirements to the vendor’s risk.

Mistake 5: Storing Certificates of Insurance in Disorganized Systems

Email inboxes are not risk management tools.

Why Managing COIs Manually is a Nightmare

Let’s be honest.

If you’re a property manager, GC, or part of a risk and compliance team, COI management probably looks like this:

  • Chasing vendors for missing documents
  • Updating spreadsheets that are never quite current
  • Digging through email threads for attachments
  • Sending manual reminders that get ignored
  • Getting blindsided by expired COIs

This isn’t just inefficient — it’s risky.

One missed renewal can lead to:

  • Project delays from non-compliant vendors
    Example: Your GC refuses to let a drywall crew on-site until COIs are received. The delay pushes the project timeline by three days.
  • Liability claims with no upstream coverage
    Example: An uninsured delivery driver slips in the lobby and sues the building. You find out after the COI was flagged “pending” for 3 weeks.
  • Payment holds or escalations from asset managers
    Example: An owner flags you for non-compliance when they audit the vendor list and find ten expired COIs — now payment is delayed.
  • Legal disputes over who’s responsible
    Example: A property fire is traced to contractor negligence. Without a valid COI or additional insured endorsement, your team is forced to litigate.

Manual COI tracking doesn’t scale. And when something breaks, you’re the one left holding the bag.

What Best-In-Class Certificate of Liability Insurance Management Looks Like

Forward-thinking property teams, asset managers, and general contractors are modernizing their Certificate of Liability Insurance management with Jones.

Jones Helps Teams:

  • Automatically collect Certificates of Liability Insurance from vendors
  • Enforce insurance requirements
  • Track expirations and send reminders
  • Verify policy details against contract terms
  • Centralize all Certificates of Liability Insurance in a searchable dashboard
  • Integrate with MRI, Procore, Yardi, and CMiC

Jones Uses:

  • AI-driven document scanning
  • Expert human reviewers trained in policy language
  • Real-time dashboards to monitor portfolio compliance

How Jones Simplifies Certificate of Liability Insurance Tracking

Jones is purpose-built to make COI management effortless.

Here’s how:

Centralized COI Repository

Every COI from every vendor or tenant in one place.

Automated Tracking & Reminders

No more spreadsheets. Jones tracks expiration dates and sends automated renewal requests.

Seamless Integrations

Syncs directly with tools like Procore, MRI, CMiC.

Real-Time Dashboards

Instant visibility into compliance status across your portfolio.

Full Service COI Review

Let Jones review and verify COIs for accuracy and compliance.

Faster Onboarding

Speed up project starts by removing COI bottlenecks.

Real-World Impact: The Jones Advantage

With Jones:

  • Vendors upload Certificates of Liability Insurance through a guided portal
  • Compliance dashboards show live status
  • Renewals are automated
  • Audits take just hours — not days or even weeks.

This isn’t just operational efficiency — it’s risk reduction at scale.

Final Thoughts: Why Every Business Needs to Take COIs Seriously

A Certificate of Liability Insurance might feel like boring paperwork — until something goes wrong.

In today’s risk-heavy world, COIs are not optional. They’re essential.

And if you’re managing dozens (or hundreds) of vendors, tenants, or subcontractors, doing it manually is a risk in itself.

That’s why modern teams trust Jones — turning a complex, error-prone process into a streamlined, automated system built for scale.

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.