Certificate of Insurance (COI)

Last updated October 13, 2026

How a certificate of insurance works

When a customer, landlord, lender, or partner requires proof of insurance, the insured asks its broker or insurer to issue a COI. For liability coverage the standard form is ACORD 25. It lists the insurers, policy numbers, policy periods, coverage types, and limits, and it names the certificate holder, the party that receives it.

The standard ACORD certificate states that it is issued as a matter of information only and confers no rights on the holder. State regulators, including those in Texas and New York, also say a certificate may not amend, extend, or alter the coverage in the policy or claim coverage the policy does not provide. The policy is the contract, and the certificate is a summary of it.

What a COI is, and what it is not

A certificate of insurance is a short summary document. It tells a third party that a particular insured has certain policies, with certain insurers, limits and dates, as of the day the certificate was issued. That is all it does. It is useful because it lets a landlord, customer or lender check insurance quickly without reading a full policy.

The easiest way to understand a COI is to list what it does not do:

• It is not the policy. The policy contains the insuring agreements, definitions, conditions and exclusions that actually decide whether a claim is paid. The certificate contains none of that detail.
• It is not an endorsement. It cannot add an insured, waive a right of recovery or change a limit. Those changes happen only through a policy endorsement.
• It is not a promise of payment. A certificate says nothing about whether a specific claim will be covered.
• It is not a guarantee that the policy stays in force. The standard ACORD cancellation wording says notice will be delivered in accordance with the policy provisions. It does not promise that the certificate holder will be told.
• It is not automatic proof that a contract requirement is met. A certificate can show a $1 million limit and still fall short of a contract that requires $2 million, a different policy form, or an endorsement the policy does not contain.

Who asks for a COI, and why

Certificates are requested by anyone who could be affected if the insured causes a loss and cannot pay for it. Typical requesters include:

• Landlords and property managers, who often require liability and property coverage under a lease.
• Customers and enterprise buyers, who ask vendors for certificates during procurement, often listing liability, professional liability and cyber limits.
• Lenders, investors and acquirers, who may ask for evidence of insurance in financing documents or diligence.
• Contractors, venues and event organizers, who commonly require certificates before work begins or an event takes place.
• Platforms, marketplaces and partners, who set minimum insurance as a condition of onboarding.

What they are really checking is that the insured has the right types of coverage, in at least the required amounts, in force for the whole contract term, and sometimes with insurers that meet a minimum financial strength standard. Some contracts also ask for status or wording that only an endorsement can provide.

What an ACORD 25 shows

ACORD 25 is the standard certificate of liability insurance used in the United States. The layout is consistent, which makes it easy to scan. A typical ACORD 25 includes:

• Producer and insured. The broker or agent issuing the certificate, and the named insured with its address.
• Insurers affording coverage. Each insurer is listed with a letter (A, B, C and so on), often with its NAIC number, and the coverage rows refer back to those letters.
• The coverage table. One row per policy type, such as commercial general liability, automobile liability, umbrella or excess liability, and workers compensation and employers liability. Each row shows the policy number, effective and expiration dates, and the limits. The general liability row has boxes showing whether the form is occurrence or claims-made.
• ADDL INSD and SUBR WVD columns. These indicate whether additional insured status and a waiver of subrogation apply to that policy. A marked box is a statement about the policy. The endorsement itself is what creates the right.
• Description of operations. A free-text box that may name locations, projects or the contract, and may reference endorsement forms.
• Certificate holder. The name and address of the party receiving the certificate.
• Cancellation block and authorized signature. The standard disclaimer and cancellation language, and the signature of the issuing representative.

Other coverages, such as technology errors and omissions or cyber, are often shown in open rows or in the description box, because the form is built mainly around general liability, auto, umbrella and workers compensation. Property insurance is usually evidenced on a different ACORD form.

Certificate holder vs. additional insured

This is the most common point of confusion, and the one that creates real exposure. A certificate holder is simply the party that receives the certificate. Being named as the holder generally gives that party no rights under the policy, and in many cases not even a right to notice of cancellation.

An additional insured is a party the insurer has agreed, by endorsement, to treat as an insured under the policy, usually for liability arising out of the named insured's work, operations or premises. ISO publishes a range of additional insured endorsements for general liability, for example forms for ongoing operations, completed operations and managers or lessors of premises, and their scope differs. A party can be both holder and additional insured, but one does not imply the other.

Contracts often add related requests: that the insured's coverage be primary and non-contributory, and that the insurer waive subrogation against the counterparty. Each of these also depends on policy wording or an endorsement, not on the certificate.

How to read a COI, step by step

1. Match the name. The named insured should match the legal entity in the contract, spelled the same way.
2. Check each insurer. Confirm the insurer on every row. If the contract sets a minimum rating or requires an admitted carrier, check that too.
3. Check the dates. Policy periods should cover the whole contract term, and an expiring policy should be flagged so a refreshed certificate follows at renewal.
4. Compare limits to the requirement. Look at the each-occurrence and aggregate limits, and see whether the contract allows an umbrella or excess policy to satisfy part of the requirement.
5. Check the basis. Occurrence versus claims-made matters, especially for professional liability.
6. Read the boxes and the description. See whether the additional insured and subrogation waiver boxes are marked and whether the description refers to endorsement forms.
7. Confirm the endorsements exist. If the contract requires additional insured status, ask for a copy of the endorsement or the policy page that lists it.
8. Check the holder. The name and address should match what the contract requires.

Why a COI is not a policy

The reason is structural. Insurance is a contract between the insurer and the named insured. The certificate is a document produced by the broker or insurer for someone who is not a party to that contract. A certificate typically does not show deductibles or retentions, sublimits, exclusions or conditions, so it can look perfectly in order while the policy contains a limitation that matters.

If the certificate and the policy disagree, the policy generally controls, and the standard disclaimer says the certificate confers no rights on the holder. Courts and state laws treat misleading certificates differently depending on the facts and the jurisdiction, so the details vary. The practical lesson is simple: if a contract needs a right, such as additional insured status, get the endorsement, not just the certificate.

COI vs. related terms

• COI vs. binder. A binder is a temporary written confirmation that coverage is in force before the policy is issued. A COI summarizes a policy that has been bound or issued.
• COI vs. endorsement. An endorsement changes the policy. A COI only reports on it.
• COI vs. declarations page. The declarations page is part of the policy and lists the named insured, policy period, limits and forms. A COI draws on it but is not part of the policy.
• COI vs. evidence of insurance. Evidence of insurance is the broader category. A liability COI on ACORD 25 is one kind, and property coverage is typically evidenced on other forms.

Example

Common mistakes and misconceptions

• Treating a COI as coverage. A COI is evidence of a policy, not a source of coverage. Courts have generally held that a certificate with the standard disclaimer does not create rights that the policy itself does not give, although outcomes can depend on the facts and the jurisdiction.
• Assuming certificate holder means additional insured. These are different. See additional insured.
• Not checking the details. Reviewers should check named insured spelling, policy dates, limits, and whether the required endorsements are actually attached to the policy.
• Relying on an old certificate. A COI reflects the policy on the date it was issued. Policies can be cancelled or changed afterward, and the certificate does not update itself.
• Extra wording. Texas and New York limit what a certificate may say. Contract requests to add coverage language to a certificate may not be permitted.

Second example: an enterprise customer contract

Questions to ask before you send or accept a COI

• Do the policy types, limits and dates match each requirement in the contract, line by line?
• Does any requirement need an endorsement, and is that endorsement actually on the policy?
• Is the insured's legal name exactly right, including any subsidiary that will perform the work?
• Who else needs a certificate, such as a lender or landlord, and by when?
• When does each policy expire, and who will send an updated certificate at renewal?
• Is the cancellation-notice language in the contract something the insurer will actually agree to?
• Does the certificate say anything the policy does not support? If so, correct it before it goes out.

Why it matters for technology, AI, fintech and digital-asset companies

Enterprise buyers, banks, and platform partners routinely ask vendors for COIs during procurement and diligence, and sales cycles can stall on them. Keeping coverage in line with contract requirements before the request arrives makes certificate turnaround faster. See also enterprise contract insurance requirements.

Mismatches between what buyers ask for and what a standard liability form shows are common for technology companies. Enterprise and bank procurement teams often use templates written for contractors, so they request coverage and endorsements that do not fit a software or digital-asset business. Crypto and fintech counterparties, such as custodians, banks and exchanges, may ask for evidence of crime, cyber and tech E&O coverage, and investors often want to see D&O. Reading the insurance clause before signing lets you negotiate requirements your program can meet. See cyber and technology E&O and insurance for venture-backed startups.

Related terms

Frequently asked questions