What is a COI?
(Certificate of Insurance)
COI / Certificate Of Insurance = Basically Proof of Insurance...let's dive in...
So you have 3 parties that usually either ask for or play an active role when this document is requested and produced.
- The Insured
- The Certificate Holder
- The Additional Insured
Its not as complicated as it seems.
Let's say you own a painting company...
Your customer(or the general contractor that hired you as a sub), will want to know you carry insurance in the event of poor workmanship, breach of contract or on the job accidents that either harm said customers' property or worse someone gets injured whether it is yourself, your employees or someone else related to the job for that matter that can hold you or your company at fault.
Let's Break This Up Into Bite Size Pieces
Top Left Section
Producer = Most of the time this will be your Insurance Broker or Agent. It can also be your Insurance Carrier or Underwriter.
On the right side of this will be contact info so anyone can communicate with the producer of this document to verify it. This is very common.
Insured = Your company or entity that is insured. This is your proof of insurance or "COI" or "Certificate Of Insurance".
top right section
Contact information of the Producer of this certificate. As well as the Insurers aka the insurance companies that provide your insurance. The letters A, B, C, D, refer to and correlate to the types of policies in the mid section below.
For example on "Automobile Liability" in the mid section below, up here it could say... Insurer B: Progressive Auto Insurance Co.
Mid Section
These are the both, broad and basic parts of your insurance that have an important relevance for the parties involved. We'll get into detail in another article. But basically type of policy, policy number, policy effective dates and the dollar limits are whats in this section.
Mid section
It doesn't get as detailed as you might think here even thought it says "Description of Operations" and such.
For the most part the parties that are "Additional Insured" will be listed here and legal wording that will say something about how they are insured and protected. It will usually be the certificate holder, your client, and other parties directly involved in and on the job your company was hired to do. Here's a real world
example below....
Certificate holder; ABC Company; Rob and Tina Williams 123 Oak Lane Drive NY 11234; Landlord Smith Corp 789 main st NY 11234; Are additional insured to the extent applicable on a primary and non-contributory basis as for on going and completed operations as per written contract.
Job: Rob and Tina Williams 123 Oak Lane Drive Apt #1D NY 11234; Painting; 2/1/2019.
bottom left
Certificate Holder = Usually the Certificate Holder is also additional insured cause this this the person or entity that is requesting to see and have this document as proof that you are insured. Again...Usually, not necessarily since, as the name of this document implies, it is synonymous with purely being proof of insurance.
When your insurance broker, agent or carrier produces one of these documents, the specifics of your insurance policy or policies don't change but merely reflect particulars of your insurance.
So in the end anyone can be a Certificate Holder and it doesn't mean they are Additional Insured.
bottom right
Self explanatory. Shouldn't have to be said but what the heck.
The person, usually your Representative being the Insurance Broker or Insurance Agent that is responsible for producing this coi.