Is a Certificate of Insurance Proof of Insurance?

You might have the right insurance coverage for your business, but you may still need to prove it. This is where a certificate of insurance COI comes in. This document allows your clients to verify that your business has active insurance coverage before they work with you. Your COI serves as proof of insurance and should show that your coverage is valid and up to date. In many ways, it’s similar to having a medical or auto insurance card. Your COI isn’t hard to get and you can request it right from your insurance company. Learn more about Is a Certificate of Insurance Proof of Insurance .

Who Needs a Certificate of Insurance?

It’s important for almost all small business owners to have a certificate of insurance. Generally, a certificate of insurance is a physical piece of paper. However, certain states accept an electronic proof of insurance. Businesses, contractors or customers you work with may ask to see proof of insurance. Some businesses may require a COI before they will even sign a contract with you. Learn more about Who Needs a Certificate of Insurance.

Certificate of Insurance (COI)

Q: Why Ask for a Certificate of Insurance?

Before a third party works for your company, you’ll want to ask for a certificate of insurance as proof that they have the right coverage. If you don’t, you may be liable for claims filed against you. For instance, let’s say your construction company hires a subcontractor. The subcontractor accidentally causes a lot of property damage while working on the job. If the subcontractor doesn’t have the right liability insurance, your company may have to pay for the damage. In addition, if the subcontractor sustains an injury while working on the job, you may be responsible for their medical bills. You can easily get a business insurance quote .

What Are Certificates of Insurance?

A certificate of insurance (COI) is a document from an insurer to show you have business insurance. They’re also known as certificates of liability insurance or proof of insurance. With a COI, your clients can make sure you have the right insurance before they start working with you.

At The Hartford, we make it quick and easy to request a COI, no matter the day or time. The document is typically no more than one page long and provides a summary of business insurance coverage that your business has.

What Does a Certificate of Insurance Typically Include?

The policyholder on a COI is the “insured.” Other basic information on a certificate of insurance includes:

Mailing address
Contact information for the insurance company
Type of policy
Policy effective dates
Coverage limits
An additional insured on professional liability or other people and companies on the policy

For example, a COI for a company with small business insurance might outline details of its:

After requesting a COI, you become a certificate holder and your name and contact information will be on the document. If you ask another small business owner to provide you a COI, they’ll also have to notify you of any policy cancellations.

Why Do I Need To Provide a Certificate of Insurance?

Potential clients or independent contractors may ask for proof of insurance coverage before agreeing to work with you. That’s why it’s important for small businesses to have a COI.

For example, let’s say you’re submitting a bid to provide landscaping services for a town. To have the winning bid, there’s likely a condition to provide certificates of liability insurance proving you have an active policy that can protect against claims of bodily injury and property damage.

How To Get a Certificate of Insurance

If your client requests a COI, you can get one from your insurance company. Some states may also let businesses use an electronic version or insurance ID cards to prove they have insurance. It’s a good idea to make sure you know what’s acceptable in your state.

If you’re a policyholder with The Hartford, requesting a certificate of insurance is easy. You can request one in less than five minutes through your online account. In most cases, you’ll get your certificate instantly. Chat or phone support are also available to guide you through if you get stuck.

Here are the three ways to request a certificate of insurance:

Register or log into your account online and complete our certificate of insurance form.
Contact local insurance agents or brokers or call 866-467-8730 and speak with one of our specialists.
If you need coverage, you can get a business insurance quote online in just a few minutes.

Why Ask for a Certificate of Insurance?

Before another company works for you, it’s a good idea to request a COI. This lets you make sure they have the right insurance coverage. If they don’t, a person can report a claim under your policy.

To give you a better understanding, let’s say you hire a subcontractor. You didn’t request a COI before hiring the subcontractor to do work and they cause $200,000 worth of property damage. Without small business liability insurance, you may have to pay for the damage out of pocket.

You can avoid this situation if you ask for proof of insurance before any work begins. If you find a gap in their coverage, ask them to get the correct insurance and give you an updated COI. If they don’t agree, you can find someone new to work with.

When you’re reviewing a COI, make sure it:

Is issued by a legitimate insurance company
Matches the name of the person or company you’re hiring
Has the correct amount of coverage
Lists each coverage
Has a policy with an expiration date after completing your project

How Much Does a Certificate of Insurance Cost?

There’s no cost to get a certificate of insurance. However, if you don’t have an insurance policy, you’ll need to get coverage through an insurer first. There’s no one-size-fits-all policy, so insurance costs vary. Our customers pay an average of $261 a month for a Business Owner’s Policy (BOP).¹

Remember, your cost can depend on different factors and will be unique to your business. The best way to find out how much coverage will cost you is to get a business insurance quote.

Common Proof of Insurance Mistakes

One of the biggest mistakes you can make when hiring a third party is accepting a certificate of insurance that didn’t come from an insurance agent or company. Getting a COI from an insurance provider means you’ll see accurate information about their coverage details and limits.

It’s a good idea to get in the habit of asking for a COI every time you hire a third party, even if you’ve worked with them before. Their insurance coverage could have changed since the last time you worked with them.

Last Updated: November 23, 2022

¹ Premium amounts presented are based on monthly premium paid by The Hartford’s Small Business customers between 1/1/21 and 12/31/21 for 12-month policies. Premium is derived from a number of factors specific to your business and may vary.

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