What Is a Certificate of Insurance (COI)? A Complete Business Guide

What Is a COI?

COI stands for Certificate of Insurance. A Certificate of Insurance (COI) is a standardized document that proves an individual or organization holds active insurance coverage.

It serves as formal documentation confirming that a vendor, contractor, tenant, or service provider has valid insurance coverage.

A COI is not an insurance policy itself, but it summarizes the critical information from one or more policies, enabling businesses to verify compliance quickly and efficiently.

What Does COI Stand For in Business Terms?

A COI functions as a compliance tool and risk mitigator.

It has become an indispensable component of risk management for businesses across sectors. COIs are especially crucial in environments involving third-party vendors, high-liability tasks, and regulated industries such as construction and real estate.

Understanding what a COI is—and using it effectively—can save your company from costly legal exposure and operational disruptions.

How is a Certificate of Insurance used in Business?

Verifying Third-Party Coverage

Businesses often rely on third-party vendors or subcontractors. A COI verifies that these external parties hold valid insurance—so if something goes wrong, the liability doesn’t fall back on your business.

Example: A facilities management company hires a landscaping vendor. Before work begins, the manager requests a COI with general liability and workers’ compensation to ensure the vendor can cover any property damage or staff injuries.

Ensuring Contractual and Regulatory Compliance

Many service agreements, leases, and construction contracts explicitly require COIs. Without them, companies risk breaching contracts or violating regulatory expectations.

Example: A real estate firm leases office space to a law firm. The lease mandates that tenants provide a COI showing general liability and commercial auto insurance to cover delivery-related risks.

Reducing Operational Risk

A COI provides proof that risk has been transferred appropriately to the insured party. In sectors where delays and damages can lead to major costs, this is essential.

Example: A general contractor working with multiple subcontractors needs COIs to ensure each subcontractor carries appropriate coverage before starting work. This reduces the GC’s liability in the event of an incident.

Industries That Commonly Require COIs

Construction

General contractors and developers often engage dozens of subcontractors on a single project. Each must submit a COI demonstrating coverage like general liability, workers’ comp, and commercial auto.

Example: A subcontractor hired for electrical work must show proof of $1M liability and up-to-date workers’ compensation before stepping on-site.

Property Management & Real Estate

Property managers need COIs to ensure vendors (e.g., janitorial, HVAC, snow removal) and tenants have adequate insurance coverage. Failure to do so could mean assuming liability for accidents or damages.

Example: A property management firm onboarding a new tenant at a commercial office complex will request a COI showing general liability and property insurance.

Facilities Management

Facilities managers coordinate a range of services from equipment maintenance to cleaning. COIs are vital to ensure external providers are covered for on-site incidents.

Example: A facilities manager hiring a pressure washing company for a large hotel must confirm liability coverage in case the high-pressure equipment damages the property.

Hospitality & Events

From caterers to production crews, third-party service providers in the hospitality industry present varied risks. COIs ensure that each partner assumes their own liability.

Example: An event planner coordinating a corporate conference requires COIs from AV vendors, furniture rentals, and the catering team.

Logistics & Transportation

Whether it’s moving goods or people, transportation involves liability risks. COIs confirm that service providers can cover accidents or loss.

Example: A warehouse contracting with a local delivery company requests a COI that includes commercial auto and cargo liability coverage.

What Information Is Included in a Certificate of Insurance?

A Certificate of Insurance (COI) is a critical document in vendor and contractor compliance — but to truly understand its value, property managers, asset owners, and general contractors need to know what information it contains and why it matters.

Here’s a breakdown of the key elements typically found on a COI — along with an important final piece that’s often overlooked: policy provisions.

Named Insured

This is the entity or individual that owns the insurance policy. The named insured must directly match the vendor or contractor performing the work. If the names don’t align, the COI may not provide any coverage for their work on your property.

Insurance Carrier(s)

Lists the insurance companies underwriting each policy. Working with reputable, financially stable carriers gives greater assurance that any future claims will be honored.

Types of Coverage

The COI summarizes the vendor’s active policies. For real estate and construction projects, the most common types include:

• General Liability: Covers bodily injury and property damage caused to third parties.
• Workers’ Compensation: Covers medical costs and lost wages if vendor employees are injured on the job.
• Commercial Auto: Covers vehicles used for business operations, like deliveries or transporting materials.
• Umbrella/Excess Liability: Adds extra liability coverage above standard policy limits, critical for high-risk work.
• Professional Liability (Errors & Omissions): Relevant for design professionals such as architects, engineers, or consultants.

Policy Numbers

Unique identifiers for each policy, which allow for quick verification with the insurance carrier if needed.

Coverage Limits

Defines the maximum amount the insurer will pay per occurrence and in aggregate. For example, a typical General Liability policy might offer $1 million per occurrence and $2 million in aggregate coverage.

Effective & Expiration Dates

Ensures that the coverage is active and current. Expired COIs mean the vendor is non-compliant and potentially uninsured for any claims during the gap.

Certificate Holder

The entity requesting proof of insurance — typically the property manager, asset owner, or general contractor. This confirms the COI is intended specifically for your project or property.

Additional Insured Language

This section indicates whether the requesting party (your organization) is added to the vendor’s policy as an Additional Insured. This extends certain policy protections to you, which is often contractually required in real estate and construction agreements.

Policy Provisions to Look for in a COI

Beyond the basic coverage details, many COIs include important policy provisions that further clarify the protections available. These provisions provide extra layers of risk mitigation and are often negotiated within contract terms.

Primary & Non-Contributory Language

This provision specifies that the vendor’s insurance will respond first (primary) in the event of a claim, without seeking contribution from the property owner’s or GC’s insurance (non-contributory). This protects your policy limits from being eroded by claims tied to vendor activities.

Waiver of Subrogation

This prevents the vendor’s insurer from seeking reimbursement (subrogation) from your company after paying a claim. It limits the likelihood of your company facing additional legal or financial action tied to vendor claims.

Notice of Cancellation

Some COIs include a provision requiring the insurer to notify the Certificate Holder in advance (usually 30 days) if the policy is going to be canceled. This helps avoid surprises and allows teams to request updated coverage before a lapse occurs.

Endorsements Listing

While not always present directly on the COI, endorsements (attachments modifying the standard policy) are critical. These may cover:

• Additional Insured status
• Waiver of Subrogation
• Primary & Non-Contributory wording
• Project-specific or location-specific requirements

Why Policy Provisions Matter for Risk Management

Understanding and verifying these policy provisions is crucial for effective COI review. Simply having a COI is not enough — construction and property teams need to ensure that the right language and protections are in place.

When used correctly, these provisions:

• Protect your organization’s insurance policies from unnecessary claims
• Limit liability exposure tied to vendor incidents
• Strengthen your contractual position during disputes or claims
• Create a more defensible compliance posture during audits or litigation

For property managers, asset owners, and construction teams working with dozens (or hundreds) of vendors, this level of detail is essential to reducing risk and operating safely across every project or property.

When Do You Need a COI?

A COI is required any time you engage with third parties who might expose your business to liability. Key scenarios include:

Hiring Contractors or Subcontractors

Construction and facilities teams should collect COIs from all trades before work begins.

Example: A general contractor hiring a roofer needs proof of general liability and workers’ comp in case an employee falls on-site.

Onboarding Vendors or Tenants

In real estate, COIs are required for everything from HVAC repairs to janitorial services.

Example: A commercial landlord onboarding a new tenant requires a COI that includes general liability and property insurance to protect against tenant-caused damage.

Complying with Lender, Investor, or Corporate Policies

Financial stakeholders often require that insured vendors are on file for risk assessment purposes.

Example: A REIT mandates that all property managers submit COIs for active vendors quarterly.

Operating in High-Risk Environments

Any task involving electrical, structural, or hazardous work demands documented insurance.

Example: A facilities team bringing in a pressure washing vendor to clean parking structures checks the COI to confirm the vendor is covered for property damage.

Why a COI Alone Isn’t Enough

It’s important to remember that while a Certificate of Insurance provides proof of coverage, it doesn’t actually grant coverage to your organization on its own. The COI is simply a summary of the vendor’s active insurance policies — not a contract or guarantee of protection.

For this reason, collecting a COI should always be part of a broader risk management strategy that includes well-crafted Master Service Agreements (MSAs) and indemnity provisions within vendor contracts. These legal agreements spell out the responsibilities of each party, provide additional protection in the event of a claim, and ensure that risk transfer mechanisms like Additional Insured status and Waivers of Subrogation are contractually enforceable — not just listed on a piece of paper.

In short: a COI confirms a vendor has insurance, but it’s your contracts that help ensure that insurance responds when you need it most.

Why Are COIs Important for Businesses?

COIs aren’t just about compliance—they’re about protection, efficiency, and long-term risk reduction.

Transfer Liability

If a vendor causes harm, the COI ensures that your company isn’t financially responsible. Without proof of coverage, your business may be held liable by default.

Ensure Operational Continuity

Missing COIs can stall projects. Many firms won’t allow work to start until all documents are received and verified.

Example: A contractor can’t access a site until they provide an approved COI with correct coverage and active dates.

Meet Contractual and Legal Obligations

COIs are often legally required in contracts, leases, and vendor agreements. Failing to collect them could breach terms.

Enable Scalable Vendor Management

For growing property portfolios or construction pipelines, COIs create a uniform standard for compliance.

Example: A property management company operating 40+ buildings uses a COI workflow to ensure all service providers meet insurance requirements without manual follow-up.

Strengthen Audit and Legal Defensibility

Organized COI documentation allows you to respond quickly to audits or disputes. Digital records are especially helpful during claims investigations.

Common Misunderstandings About COIs

• “A COI means I’m covered.” Not necessarily. A COI summarizes policy terms—it doesn’t provide actual coverage.
• “I’m listed as the certificate holder, so I’m protected.” Certificate holder status only means you’ve received proof—it doesn’t mean you’re insured.
• “All COIs are the same.” COIs vary by insurer, type of coverage, and specific endorsements. Always check the fine print.
• “I don’t need to review COIs if I’ve collected them.” You must verify that they meet your company’s contract requirements and standards: correct coverage types, policy limits, and dates.
• “Once I have a COI, I’m covered indefinitely.” Policies expire—COIs must be updated regularly to remain compliant.

Digital COI Management Tools: Why Jones Stands Out

Manually tracking Certificates of Insurance (COIs) across dozens—or even hundreds—of vendors is time-consuming, error-prone, and risky. Jones offers a modern solution: a centralized platform that automates and simplifies every step of COI management while helping companies reduce liability and improve vendor relationships.

Jones is purpose-built for high-compliance industries such as commercial real estate, construction, and property management. Whether you’re a general contractor managing dozens of subcontractors or a property manager overseeing multi-tenant buildings, Jones helps ensure every third party is properly insured and fully compliant—without the administrative overhead.

Key Capabilities of Jones:

• Contract Tracking & eSignature Management
  Track vendor agreements, contracts, and waivers alongside COIs in a single platform. Jones makes it easy to request signatures, store executed contracts, and maintain a clear audit trail — reducing administrative overhead and keeping all compliance documentation in one place.
• Automated COI Collection & Renewal Tracking
  Jones automatically collects COIs from vendors and tracks expiration dates, sending reminders before lapses occur so you never fall out of compliance.
• Custom Insurance Requirements by Vendor or Role
  Assign specific insurance rules based on vendor type, building, project, or trade. Jones flags issues and blocks non-compliant vendors from operating until they’re resolved.
• Live Compliance Dashboards
  Risk managers and field teams can instantly see who’s compliant and who’s not, across all properties or projects.
• White-Glove Review Services
  Jones can serve as your outsourced compliance team, reviewing COIs and endorsements against your requirements and marking vendors approved or not approved.
• Self-Serve Vendor Experience
  Vendors can upload documents, respond to requests, and correct deficiencies via a simple, guided interface—without the need for logins or long training.
• Integration with Industry Tools
  Jones integrates with platforms like MRI, Yardi, Procore, and CMiC—syncing vendor data and ensuring insurance compliance is always in lockstep with operations.
• Portfolio-Wide Standardization
  For property owners and asset managers, Jones enables standardized compliance policies and reporting across every building, region, or operating partner.

The Impact of Jones:

• Faster vendor onboarding
• Fewer project delays due to missing paperwork
• Reduced risk of uninsured claims
• A lighter load for legal, operations, and property management teams

Jones isn’t just software—it’s a smarter way to manage risk. Whether you manage three properties or three hundred, Jones makes COI compliance scalable, auditable, and headache-free.

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.