COI fundamentals
What a certificate of insurance shows—and what it does not
A certificate of insurance is a summary of insurance information prepared for a particular purpose. It is useful evidence, but it is not the policy and does not independently create coverage.
The four documents people often confuse
Insurance policy
The contract containing coverage grants, definitions, conditions, exclusions, limits, and other terms.
Endorsement
A document that changes or clarifies the policy. An executed endorsement may add an additional insured, modify priority of coverage, or waive certain recovery rights, subject to its wording.
Certificate of insurance
A snapshot of selected policy information on the date it is issued. It generally does not amend or extend the underlying policy.
Contract insurance requirement
A promise between contracting parties about insurance. The requested terms still need to be available and properly reflected in the actual policy documents.
Fields worth checking first
- The exact named insured and business entity.
- Policy effective and expiration dates.
- Coverage lines and their individual limits.
- Certificate holder name and address.
- Indicators for additional insured or waiver of subrogation.
- Description of operations, project, or location when requested.
- Separate endorsements or supporting documents requested by the client.
Certificate holder is not the same as additional insured
A certificate holder receives the certificate as evidence. Additional insured status, when available, comes from the policy or an endorsement—not simply from placing a name in the certificate holder field. This distinction is one of the most frequent sources of confusion in contractor onboarding.
A practical next step
Gather the client’s written requirements and use the free rejection-risk checker. The result is a preparation aid, not an approval or coverage determination.