What’s a Certificate of Insurance (COI) and Why Do I Need One? 

As a business owner, it’s often essential for you to know how to demonstrate that your operations are financially protected by the right insurance coverage. One of the most common ways to provide this proof is through a certificate (COI). But what exactly is a COI, and why might you need one for your business?

Understanding COIs

A COI is an official document issued by your carrier that summarizes your business insurance policies. It typically outlines key details such as the types of coverage you carry (e.g., general liability or workers’ compensation), policy limits, effective dates and the name of your insurer. While a COI is not the insurance policy itself, it serves as proof that your business has active coverage in place.

Why Your Business Needs COIs

Many other parties, such as clients, landlords or project managers, may request a COI before allowing you to start work, sign a contract or access a job site. These documents can help reassure others that your business is financially protected if something goes wrong, such as accidents resulting in property damage or bodily injury. Specifically, you may often need to present a COI as part of the following processes:

• Bidding on or starting a new project
• Signing a lease for commercial property
• Working as a subcontractor for a general contractor
• Meeting vendor or client requirements

Having a COI on hand can help you avoid project delays, secure new contracts and build trust with your partners.

Learn More

At Blackburn Insurance Agency, Inc., we make it easy for our clients to understand and retain these key documents. Furthermore, our team understands the various insurance-related requirements Texas businesses may face and can help craft customized coverage according to your unique circumstances.

If you have questions about COIs or other aspects of your business insurance, contact us today.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.