Question 1

Who needs a certificate of insurance?

Accepted Answer

Anyone who hires contractors, leases commercial space, or works on others' property may be asked for one. If you're a freelancer, contractor, or consultant, clients will often require a COI before you start work. If you're a business owner hiring help, you should require COIs from anyone doing work on your premises.

Question 2

What does a certificate of insurance show?

Accepted Answer

It lists the policyholder's name, the insurance company, the type(s) of coverage (general liability, professional liability, workers' comp), policy numbers, coverage limits, and effective dates. It also shows any additional insureds — third parties who are covered under the policy.

Question 3

Is a certificate of insurance the same as an insurance policy?

Accepted Answer

No. A COI is a summary that confirms coverage exists. It doesn't contain the full terms, conditions, and exclusions of the actual policy. Never rely on a COI alone for understanding what's covered — if you need details, ask for a copy of the full policy.

Question 4

What happens if a contractor doesn't have insurance?

Accepted Answer

You're exposed. If the contractor causes damage or gets injured on your property, you could be liable. Some states require contractors to carry insurance by law. Even where it's not required, hiring an uninsured contractor is a risk most businesses shouldn't take. The COI is your verification.

Question 5

Can I be added as an additional insured on someone else's policy?

Accepted Answer

Yes, and you should ask for it. Being listed as an additional insured means their insurance covers you for claims arising from their work. If a contractor's employee gets hurt on your property, the contractor's policy — not yours — pays out. Most insurers will add additional insureds for free or a small fee.

Question 6

How do I verify a certificate of insurance is real?

Accepted Answer

Call the insurance company listed on the COI directly. Use a phone number you find independently — not the one on the certificate. Fake COIs exist, especially in construction. The insurer can confirm the policy is active and the coverage amounts match. Takes 5 minutes and can save you from serious liability.

Certificate of Insurance

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