What Is a COI? How To Get a Certificate of Liability Insurance

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Imagine you want to hire a business to repaint the inside of your shop. The contractor explains what the job entails and how much it will cost. They may also give you a copy of their certificate of liability insurance, or COI. This document serves as proof they have coverage to protect you, them, and your customers in case of an accident or property damage during the project.

Here’s what you need to know about COIs.

What is a certificate of liability insurance?

A certificate of liability insurance (COI) is a standardized document that outlines your business’s general liability insurance coverage. It’s usually a one-page document that condenses crucial information about your general liability insurance policy, making it easy for potential customers, lenders, and investors to verify your business maintains active insurance coverage that meets their standards. 

The COI offers an official snapshot of your insurance policy, showing you bought liability coverage from a licensed insurance company or agent. It also determines the extent and breadth of your coverage, including coverage limits. Unlike your actual insurance policy document, which can contain dozens of pages with detailed terms and conditions, the certificate presents the most important information upfront in a clear, standardized format.

Typically, the COI is presented on an Accord 25 form, which is the industry standard in the US. This standardized form provides simplicity and consistency for certificate holders and clients who need to understand their coverage, regardless of which insurer underwrote the policy.

COIs and different types of insurance

• General liability insurance
• Professional liability insurance
• Commercial auto liability insurance
• Workers’ compensation insurance

Although the term “certificate of liability insurance” typically refers to general liability insurance, insurers also issue COIs for other types of liability insurance policies. Understanding how COIs relate to different types of insurance can help clarify their role in your broader business insurance strategy.

Each type of insurance certificate serves the same basic purpose: providing official documentation that your business has active coverage. The specific type of certificate required depends on the nature of your business, the services you provide, and the requirements set by your clients, landlords, or state regulatory bodies.

General liability insurance

General liability insurance coverage is the most common type documented by COIs. A general liability insurance policy protects against third-party claims—including those from customers, vendors, visitors, and the general public—for bodily injury, property damage, and other types of personal injury that might occur during your business operations. When someone requests a COI, they usually mean a general liability insurance certificate.

Professional liability insurance

Professional liability insurance, also known as errors and omissions (E&O) insurance, addresses claims related to professional mistakes, negligence, and failure to deliver promised services. Many professional service providers, like consultants and real estate agents, use COIs that document E&O coverage.

Commercial auto liability insurance

Commercial auto insurance COIs prove your business vehicles carry adequate coverage for accidents or property damage. Businesses that need this type of COI might lease vehicles, offer contractor services, or enter into delivery contracts.

Workers’ compensation insurance

Workers’ compensation COIs demonstrate compliance with state requirements for employee injury coverage. Many clients and partners require a business to have COIs before they let contractors or subcontractors begin work on their premises. If a business has employees, it may need to keep this COI on file to legally operate in a given state.

Why do businesses need a certificate of liability insurance?

The primary purpose of a COI centers on risk management and relationship-building in the world of business. When you can show proof of insurance through a COI, you demonstrate financial responsibility and professional credibility to potential partners, clients, legal entities, and other stakeholders.

From a more practical standpoint, COIs attest to the legal protection that applies to multiple parties. Your clients gain confidence knowing if your business causes physical injury or property damage during a project, your liability insurance will help cover the costs. This protection extends beyond just covering immediate damages—it also provides assurance your insurance company will handle legal defense costs and settlement payments (so long as they’re within coverage limits) without directly affecting your business’s finances.

The COI clearly documents those coverage limits, as well as when the policy will begin coverage and the expiration date. This can be crucial if questions or disagreements arise about a specific incident or project.

For insurance companies, COIs help manage risk by ensuring all parties involved in a business relationship understand the extent—and most important to them, the limits—of coverage. Plus, the standardized Accord 25 format reduces confusion and helps prevent misunderstandings about what is and isn’t covered under a policy, regardless of who issued it.

Situations where COIs are needed

• Client contract requirements. Many clients, especially larger corporations, require businesses to show proof of liability coverage before entering into service agreements. 

• Commercial lease agreements. Landlords often require commercial tenants to provide COIs before signing lease agreements. 

• Professional licensing applications. Certain professions and trades require proof of liability coverage as part of the licensing process. Contractors, real estate agents, and health care providers often must demonstrate adequate insurance coverage to obtain or renew their professional licenses.

• Vendor and supplier relationships. Companies often require their vendors and suppliers to maintain specific levels of liability coverage. COIs show such requirements are met and coverage remains active throughout the business relationship.

• Public works and government contracts. Municipal and government contracts frequently mandate specific insurance requirements, including minimum coverage limits and additional insured endorsements. Endorsements can extend coverage to the requesting party and are a fairly common request.

• Subcontractor agreements. General contractors typically require subcontractors to provide COIs, proving they maintain adequate liability coverage before starting work on construction or renovation projects.

• Partnership and joint venture agreements. When businesses collaborate on projects or form partnerships, COIs demonstrate all parties have appropriate insurance protection for their shared activities.

• Bank and lending requirements. Financial institutions often require proof of liability coverage before approving certain business loans—especially for companies operating in higher-risk industries, like construction, contracting, transportation, logistics, manufacturing, hospitality, medical practices, and certain professional services that handle sensitive client data.

• Event venue requirements. Businesses that host events at third-party venues often must provide COIs showing liability coverage for potential accidents or damage incurred during an event.

• Franchise agreements. Franchisers frequently require franchisees to maintain specific types and amounts of liability coverage, documented through regular COI submissions.

How to get a certificate of liability insurance

1. Purchase an insurance policy
2. Contact your insurance company or agent
3. Review and distribute the COI

Obtaining a certificate of liability insurance is a fairly straightforward process, but understanding the steps and requirements can help ensure you get the documentation you need quickly. The process begins with having an active insurance policy in place, as insurers can only issue COIs for existing coverage.

1. Purchase an insurance policy

Before you can request any certificate, you must have an active liability insurance policy or other relevant business insurance coverage. If you don’t currently have coverage, work with an insurance company or agent to evaluate your needs, compare quotes, and purchase a policy that meets your business requirements.

When selecting coverage, consider the specific certificate requirements you’re likely to need. Many clients and landlords require minimum coverage limits, such as $1 million per occurrence and $2 million in aggregate for general liability insurance. Some contracts may specify even higher limits or require certain additional insured endorsements.

2. Contact your insurance company or agent

Once you have active coverage, you can request a COI from your insurance company or agent. Most insurers provide multiple ways to request certificates, including by phone, through online portals, by email, or via mobile apps. The request process typically requires you to provide specific information about the certificate holder, their address, project details if applicable, any required additional insured parties, and any specific policy information that should be highlighted on the COI.

3. Review and distribute the COI

Most insurance companies can provide COIs within 24 hours, and often much faster for basic requests. Once you receive the COI, review it carefully to ensure all the information is accurate, including names, addresses, policy numbers, coverage limits, and policy effective dates.

After confirming accuracy, you can distribute the COI to the requesting party. Many businesses find it helpful to maintain digital copies of their COIs for quick access when new requests arise. Some insurance companies provide online customer portals where you can access and download certificates at any time.

Other considerations when obtaining a COI

The cost of obtaining COIs varies by insurance company, but many insurers provide them at no additional charge as part of their customer service. However, some companies may charge nominal fees, particularly for rush requests or COIs containing special endorsements. If you need to provide additional insured endorsements, this could increase your premiums.

If you frequently need COIs for different projects or clients, consider discussing this with your insurance agent. Some insurers offer streamlined processes for high-volume certificate generators, including online systems that let you obtain them instantly.

If your business works with multiple clients simultaneously, consider tracking certificate expiration dates to ensure you obtain updated COIs when policies renew. Many business relationships require current certificates to be on file, and expired documentation can delay projects or contract approvals.

Working with an experienced insurance agent can simplify the COI process. Agents familiar with your industry understand common COI requirements and can help you ensure your policy includes the endorsements and limits that clients typically request. This proactive approach can prevent delays and help maintain smooth business relationships.