Every General Contractor (GC) asks subcontractors and business partners for a certificate of insurance (COI). Businesses working with contractors, trade associations, tool rental shops - everyone in the construction ecosystem asks for one.
Most read it, file it, and move on as if it’s proof the coverage exists, but that’s not the case.
A COI is useful, but it's a lot less useful than most people think it is. If you’re hiring subs, sending them into homes, or running a network of them, it’s important to know what the COI actually tells you.
What is a COI?
A COI is a one-page summary of a contractor’s insurance. Most are issued on a standard ACORD-25 form by the contractor's insurance agent, not by the insurance company itself.
It lists the policies the contractor carries, the carrier that has written those policies, policy numbers, expiration dates, coverage limits, and indicates if there are endorsements on those policies.
GCs ask for COIs from subs. Property owners and managers ask for them from GCs. Contractor networks, franchisors, lenders, landlords, everyone else asks for them too. Everyone wants some reassurance if something goes wrong on this job, there’s insurance behind it.
Why a COI Isn’t Proof of Coverage
Many people don’t realize that a COI isn’t proof of insurance coverage. It’s only accurate on the day it was issued. If the policy gets canceled for nonpayment next week, the certificate in your file still looks valid when, in reality, it no longer is. Nobody is required to notify you as the certificate holder, so if you want to know when a policy is canceled, you need to set that up separately.
Here are other things about a COI that many people misinterpret:
A COI doesn’t give you any rights: The ACORD form says in plain language that it’s for informational purposes only. The information on the form, as well as being listed as a certificate holder, doesn’t mean you’re covered in any way.
A COI isn’t an endorsement: If you need to be named as an additional insured, the checkbox for the additional insured (ADDL INSD) on the COI isn’t enough. The endorsement can only come from the actual insurance policy. Seeing the endorsement itself is the only way to know you’re actually covered as an additional insured, for completed operations, or if there is a waiver of subrogation in place.
A COI doesn’t show exclusions: A policy can exclude residential work, roofing, work above a certain height, or anything being done by subcontractors. None of that appears on the contractor certificate of insurance. A subcontractor can hand you a clean COI for a policy that doesn’t cover the job you’re hiring them for.
A COI can be faked: It’s essentially an editable PDF, which means it can be changed instantly.
The list of what a COI doesn’t tell you is much longer than the list of what it actually does.
How to Verify a COI Is Legit
You should never take a COI for granted. Instead, you should always:
- Call or email the agent listed on the COI and request a copy of the COI directly from them, along with any endorsements you require, such as Additional Insured.
- Verify the insured party matches the legal name of the entity you are working with and hold a contract with
- Confirm the limits meet what your contract requires
- Confirm the policy dates and understand when the policy is set to renew
- Confirm the exclusions in the policy aren’t applicable to the type of work being done, such as a roofer having CGL insurance that has a roofing exclusion (yes that happens a lot)
- Read the endorsements to confirm they provide the insurance, waivers, or other terms you need
- Ask if you will be notified of policy cancellation as an additional insured and note the answer
Getting a copy of the policy and forms from the agent is the only way to know these items are valid, to make sure you are endorsed, and to understand the limitations of that policy.
Why Manual COI Verification Becomes More Difficult as You Grow
Verifying one insurance policy is manageable. Verifying fifty, with policies renewing on fifty different dates, however, can quickly become a full-time job. Most companies don't have the person for that, so they simply collect COIs and never dig into the policies or re-collect them on expiration.
Forged certificates, canceled policies, missing endorsements, exclusions — these are all areas that cost businesses hundreds of thousands of dollars when they realize they aren’t actually covered by their subcontractor’s or vendor’s insurance, despite having a COI on file.
How Sublynk Handles COI Verification
Sublynk is a vetted contractor network built for the trades that has solved this problem at scale. GCs, contractor networks, property managers, facility managers, insurance repair networks, and franchisors use Sublynk to source, vet, and manage large networks of contractors and vendors.
Sublynk doesn’t take a COI’s word for it. We confirm policies at the source, following the guidelines listed above. Sublynk focuses on:
- Collecting policies at the source
- Enforcing and verifying endorsements required by the certificate holder’s contract
- Triggering notifications for policy expirations
- Maintaining ongoing review and documentation of insurance requirements
- Sublynk also vets business legitimacy, licensing, background checks, and helps connect vetted pros with the businesses that need them in all forms
Sublynk removes human errors through AI agent collection and review of documentation combined with human QA so vetting is fast without cutting corners.
Licenses are checked at the source and required based on all 50 state and federal requirements for regulated trades.
Whether you’re sourcing subs, finding work, or managing a network – contact the Sublynk team with questions, or create an account and start finding work as a subcontractor today.
FAQ
What is a COI used for in construction?
A COI is a document that summarizes an actual insurance policy. The purpose of a COI is to explain the main points of the insurance policy but in a more compact form, typically one-page long, which makes it easier to read. They convey no rights and should not be taken as a guarantee of coverage.
What is a COI form?
The COI form is the standard template, usually ACORD 25 for US contractors, that insurers and brokers use for the Certificate of Insurance. All COI forms generally follow the same template, which makes them easier to read and share.
Do I need a COI by law?
In some cases, COIs are required by law. For instance, some states will require proof of insurance before issuing or renewing a contractor’s license and will ask for a COI as proof. In general, though, COI requirements come from business to business relationships where insurance coverage is required between parties.
Do I need a COI to hire a contractor or subcontractor?
Yes, it’s always a good idea to ask your subcontractor for a COI. The document is a summary and should be treated as one. If you want to verify the insurance legitimacy or if you have a contract requiring insurance between you and the contractor or subcontractor be sure to collect a copy from the agent, not from the contractor.
Do I need a COI if using contractors?
Yes, it’s always a good idea to ask your subcontractor for a COI. The COI shows there’s an active insurance for cases of accidents and (un)intended damages to your or your client’s property.
What’s the difference between a COI and an insurance policy?
The difference is that the COI is a summary of the actual insurance policy behind it. They’re different documents that showcase the same data, with the COI being more compact and easier to read. The COI is only a summary though.
Can contractors make their own COI?
No, contractors can’t make their own COI. COIs are issued by the contractor’s insurance company, agent or broker. COIs can be forged or made by contractors easily though, and that is one of the primary reasons you should seek confirmation of the policy from the issuing agent.
