TL;DR
A certificate of insurance is a short document from your insurer or broker that proves your business has an active insurance policy. You’ll usually be asked for one before a job, a lease or an event starts: a client, landlord, general contractor or venue wants to see that a claim connected to your work won’t land on them. Here’s what’s on it, how to get one, and what to check before you send it.
What is a certificate of insurance?
A certificate of insurance (COI) is a one-page summary, issued by your insurer or broker, that confirms you have an active policy and shows the type of cover, the limits and the dates it’s in force. It’s also called proof of insurance or an insurance certificate. Because most requests are about liability cover, people often call it a certificate of liability insurance.
It’s a summary, not the policy. The policy wording is still what decides what’s covered.
What’s on a certificate of insurance
Most certificates show the same handful of details. Here’s what each one means, and what to look at before you send it on.
| On the certificate | What it means | What to check |
|---|---|---|
| Named insured | The business that holds the policy | Your exact legal business name |
| Insurer and policy number | Who issued the policy, and its reference | It matches your policy documents |
| Type of coverage | For example, commercial general liability or property | It’s the cover your contract asks for |
| Limits | The most the policy will pay, per claim and in total | They meet or exceed what’s required |
| Policy dates | When the policy starts and ends | It covers the whole job or lease |
| Certificate holder | The person or company the certificate was issued to | Their exact legal name and address |
| Additional insureds | Anyone the policy has been extended to protect | Only listed if your policy was changed to add them |
| Description of operations | The work or location the certificate relates to | It describes the work you’re actually doing |
| Signature | The insurer’s or broker’s authorization | It’s there |
In Canada, many insurers and brokers use standard certificate forms from CSIO (the Centre for Study of Insurance Operations), the industry’s standards body, so certificates from different insurers often look alike.
Certificate holder vs additional insured vs named insured
These terms sound alike, but they mean very different things. The key difference: being the certificate holder only means you receive the certificate; being an additional insured means the policy itself has been changed to protect you.
| Term | Who it is | What they get | How they’re added |
|---|---|---|---|
| Named insured | You, the business that bought the policy | The policy’s full protection | They’re the policyholder |
| Additional insured | A client, landlord or general contractor named on your policy | Protection under your liability policy for claims connected to your work | An endorsement, a change to the policy itself |
| Certificate holder | Whoever asked for the certificate | A copy of the certificate, and nothing more | Their name is typed on the certificate |
| Loss payee | A lender or lessor with a financial interest in insured property | Payment for that property if it’s damaged | Named on the property section of the policy |
So if a contract asks for the client to be named as an additional insured, putting their name in the certificate holder box isn’t enough. Your insurer has to add them to the policy first, and the certificate then shows it.
Who asks for a certificate of insurance, and why
Anyone who could be pulled into a claim about your work may ask for one. The most common are:
- Landlords, before you sign or renew a commercial lease (see commercial property insurance)
- Clients and general contractors, before you start work on their property or project. Consultants and other professionals may be asked to show professional liability insurance
- Property managers and condo corporations, before you work in their building
- Event venues and organizers, before you set up a stall, a booth or an event
- Large customers, when you sign up as a supplier
- Lenders, when insured property secures a loan
- Municipalities, universities and other public bodies, before you work for them or use their facilities
They all want the same thing: to know that if your work causes injury or damage, there’s a policy to respond, and that they won’t be left paying for it.
How to get a certificate of insurance
You get a certificate from the insurer or broker who arranged your policy, not from the person asking for it, and not from Clearly Rate.
What to send your insurer
- The requester’s exact legal name and address, as it should appear on the certificate
- The insurance clause from the contract or lease, or a copy of their requirements
- The limits they require
- Whether they want to be named as an additional insured
- Whether they ask for a waiver of subrogation (an agreement that your insurer won’t try to recover a claim from them)
- The project, address or event the certificate relates to
- When you need it, especially if you can’t start without it
When they send you their own form
Many cities, universities and large organizations have their own certificate form. The City of Toronto’s, for example, says it’s to be completed only by the insurer or its representative.
If you’re sent one:
- Send it to your insurer or broker to complete and sign
- Don’t fill it in yourself, even the parts that look simple
- Allow extra time, especially if the form asks for wording, an additional insured or limits your policy doesn’t have yet
How long it takes and what it costs
Insurers and brokers usually issue certificates at no extra charge, and a standard certificate is often quick to get. Requests that need a change to your policy take longer: adding an additional insured, a waiver of subrogation or higher limits. The change itself may also affect your premium, so ask before you agree to it in a contract.
What a certificate of insurance doesn’t do
A certificate is a snapshot of your policy, not part of it. It doesn’t:
- Change your policy or extend it to anyone new
- Cover work that your policy excludes
- Guarantee that a claim will be paid
- Stay valid after your policy expires or is cancelled
Mistakes that hold up a job
Most delays come from a mismatch between the certificate and the contract:
Checking a certificate someone gives you
If you hire subcontractors or suppliers, you’ll be on the other side of this, collecting certificates. Before work starts:
- Confirm with the insurer or broker that issued it that the policy is in force, using their own contact details rather than ones on the document
- Check the names, dates, limits and description of the work against your contract
- Ask for an updated certificate at renewal, and keep them on file
A certificate from a subcontractor matters because their insurance, not yours, should respond to their mistakes. Our contractor insurance guide to hiring subcontractors covers who usually carries what.
Don’t have insurance yet?
If you’ve been asked for a certificate and don’t have a policy yet, you’ll need one first. Most requests are for general liability insurance. Tell us about your business and we’ll refer you to licensed insurers, who can issue a certificate once you’re covered.
