what is an insurance certificate

A certificate of insurance (COI) is a document issued by an insurance company or broker that verifies the existence of an insurance policy and summarizes its key features. It is used for proving insurance coverage, particularly in situations where liability and significant losses are of concern and require a COI, which is in most business contexts. Small business owners and contractors often have a COI that proves they have insurance that protects against liability for workplace accidents or injuries. Certificates of insurance contain separate sections for different types of liability coverage listed as general, auto, umbrella, and workers’ compensation. The certificate includes the policyholder’s name, mailing address, and describes the operations that the insured performs. Clients usually request a certificate directly from the insurance company rather than the business owner or contractor. A COI is used by professionals such as contractors, project managers, and vendors to provide proof of insurance to clients and others with whom they do business. It is a permanent document that is issued to show proof of insurance. Certificates of insurance are issued on behalf of the insured party (typically the vendor or contractor) by an insurance company.