Definition
A Certificate of Insurance (COI) is a document issued by an insurance broker or carrier that provides a summary of an insured party’s coverage, including policy types, limits, effective dates, and insurers.
It is used to verify that required insurance is in place — but it is not the insurance policy itself.
What a COI Typically Shows
- Name of the insured party
- Insurance carrier(s)
- Policy numbers
- Coverage types (e.g., general liability, auto, umbrella)
- Policy limits
- Effective and expiration dates
- Certificate holder information
What a COI Does NOT Guarantee
- It does not amend the policy.
- It does not automatically grant additional insured status.
- It does not override exclusions.
- It does not guarantee coverage for specific claims.
Any required additional insured or waiver of subrogation provisions must be supported by actual policy endorsements — not just listed on the COI.
Why It Matters in Real Estate
Property owners and managers require COIs from tenants, contractors, and vendors to confirm that proper coverage exists before allowing work or occupancy.
- Reduces uninsured risk exposure
- Supports contractual risk allocation
- Required by lenders and asset managers
- Helps document compliance for audits
Common Use Cases
- Tenant move-in: Verify liability coverage before occupancy.
- Construction projects: Confirm contractor insurance before work begins.
- Vendor access: Ensure service providers carry required limits.
- Events: Temporary event organizers provide COI naming owner as certificate holder.
Example
A landscaping company is hired to service an apartment complex. Before starting work, the property manager requires a COI showing $1,000,000 per occurrence general liability coverage and listing the ownership entity as certificate holder. The manager also verifies that the required endorsements are attached.
Common Pitfalls
- Accepting expired certificates.
- Failing to confirm policy limits meet contract requirements.
- Relying on COI without reviewing endorsements.
- Incorrect legal entity listed as certificate holder.
- Not tracking renewals.
Investor Checklist
- Verify coverage types and limits match contract terms.
- Confirm additional insured endorsements are provided separately.
- Ensure policy dates cover entire work period or lease term.
- Track expiration dates with automated reminders.
- Maintain digital records for compliance.