Question 1

What is a Certificate of Insurance (COI)?

Accepted Answer

A Certificate of Insurance is a one-page document, most often an ACORD 25 form, issued by an insurer or licensed agent that summarizes an insurance policy. It lists the coverage types in force, the policy limits, policy numbers, the carrier, and the effective and expiration dates as proof a business carries the coverage it claims.

Question 2

Why should I ask my subcontractors or vendors for a Certificate of Insurance?

Accepted Answer

Requesting a COI protects you financially and legally. If an uninsured subcontractor causes injury or property damage, you can be held responsible and your own insurance may have to pay, raising your premiums. A valid certificate confirms the vendor carries adequate coverage, shifts risk to the party doing the work, satisfies your insurer and client contract requirements, and documents your due diligence if a claim or audit arises.

Question 3

What is an ACORD 25 form?

Accepted Answer

ACORD 25 is the standardized Certificate of Liability Insurance form used across the U.S. insurance industry, letting you review certificates from many carriers and agents in a consistent, comparable format.

Question 4

What should I check on a Certificate of Insurance?

Accepted Answer

Confirm the required coverage types are present (such as General Liability, Auto, and Workers' Compensation); the limits meet your minimums; the policy dates are current; your organization is named correctly as certificate holder; and, where required, that you are listed as an additional insured. Also check for a waiver of subrogation or cancellation-notice language if your contract calls for them.

Question 5

What does additional insured mean and why does it matter?

Accepted Answer

An additional insured endorsement extends the vendor's liability policy to also protect your organization for claims arising from that vendor's work. Being named as an additional insured, rather than only a certificate holder, is what actually gives you coverage under their policy.

Question 6

What is the difference between a certificate holder and an additional insured?

Accepted Answer

The certificate holder simply receives the certificate as notice that coverage exists, while an additional insured is actually covered under the vendor's policy for covered claims. Being listed as certificate holder alone grants no coverage.

Question 7

What are the most common coverage types on a COI?

Accepted Answer

The most common are Commercial General Liability (CGL), Commercial Auto, Workers' Compensation, and Umbrella or Excess Liability. Depending on the industry you may also require Professional Liability, Liquor Liability, or Pollution coverage.

Question 8

What is a waiver of subrogation?

Accepted Answer

A waiver of subrogation means the vendor's insurer gives up its right to recover a claim payment from your organization, so it cannot come after you to recoup what it paid. Many contracts require it to prevent a vendor's carrier from later suing you.

Question 9

How often should I collect and renew Certificates of Insurance?

Accepted Answer

Policies typically renew annually, so a COI is only valid until its expiration date. Best practice is to collect a fresh certificate at each policy renewal and request it before the current one lapses to avoid gaps in coverage.

Question 10

What happens if a subcontractor doesn't have insurance?

Accepted Answer

If an uninsured subcontractor causes an accident or damage, responsibility can flow up to you. Your own general liability or workers' compensation policy may respond, raising your premiums and experience modification rate, and you may face lawsuits or lost work. Verifying coverage before work begins is far cheaper than absorbing an uninsured claim.

Question 11

Can a Certificate of Insurance be expired or fraudulent without me knowing?

Accepted Answer

Yes. A certificate is only a snapshot from the day it was issued; a policy can be canceled or lapse the next day, and certificates can be altered or fabricated. Track expiration dates, collect renewals automatically, and for higher-risk relationships verify coverage directly with the issuing carrier.

Question 12

Does COIGuardian make compliance decisions?

Accepted Answer

No. COIGuardian organizes evidence, extracts certificate details, and highlights gaps while your team makes final approval decisions.

Question 13

Can COIGuardian work outside construction?

Accepted Answer

Yes. COIGuardian supports property teams, municipalities, event operators, and any organization that needs current insurance evidence.

Question 14

Do insured parties need accounts to upload a certificate?

Accepted Answer

No. Insured parties and their agents receive a secure link, upload their certificate, and get clear next steps without creating an account.

Practical guidance for insurance evidence teams.

Certificate of Insurance Guide

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Construction insurance compliance

Municipal insurance compliance