Certificate of insurance (COI): What is it and do you need one?

Whether you’re hiring a contractor, signing a lease, or bidding on a project, there’s one common document you may be asked to provide: a Certificate of Insurance (COI).   

A COI is a document from an insurance company or broker that sums up an insurance policy’s key details, including coverage types, limits, and effective dates. In addition to serving as proof that a business or individual has active insurance -- and in the process, building trust in professional and personal engagements -- COIs also help to meet legal and contractual requirements.

Why are Certificates of Insurance important?

For businesses, COIs are a key part of managing risk. They help confirm that contractors, vendors, or partners have the right insurance to cover potential claims for accidents, damage, or other losses. Many contracts in Canada require a COI to ensure all parties involved are protected and compliant with relevant rules and regulations. 

COIs are often used in: 

• Construction: Contractors and subcontractors often need to provide a COI confirming they have the right liability insurance before starting a project. In British Columbia, for example, the provincial government requires all contractors to file a COI (via Form H0111) before starting work.
• Commercial leases:  Landlords typically require businesses to show proof of property and liability insurance before leasing office, retail, or warehouse space.
• Professional services and consultants: Financial advisors, consultants, and other service providers may also need a COI to prove they have professional liability coverage.
• Events: Businesses organizing corporate events, trade shows, or conferences often submit COIs to venues to show they have event liability insurance.
• Government contracts: Companies bidding on public contracts, government projects or government or industry grants may need to submit a COI to meet compliance and risk management requirements. 

Individuals may also need a COI when renting a car, leasing property, or hiring a service provider. Having one ensures the right coverage is in place and offers peace of mind for everyone involved in a transaction. 

What’s included in a COI?

A standard COI typically includes the following details:

• Policyholder’s name and address 
• Insurance provider’s contact information
• The policy number, start date, and expiration data
• The types of coverage provided — such as general liability, property, or commercial auto insurance — and the limits of each
• The names and information of any additional insured parties, such as business partners or subcontractors
• A list of coverage exclusions or limitations 
• The certificate holder (the entity requesting proof of insurance); and 
• An authorized representative’s signature to validate the document.

In Canada, the Centre for Study of Insurance Operations (CSIO) provides standardized COI templates to help ensure consistency for insurers, brokers, and people requesting proof of insurance. 

How to get a certificate of insurance

If you need a COI, you can request one from your insurance company or broker. Many insurers let policyholders do this online, by phone, or via email. The average turnaround time is 1-2 days, but it may take longer in cases where specific coverage requirements need review and approval. 

To speed up the process, be ready to provide details like the name and address of the certificate holder, any specific coverage requirements, and project or contract details (if relevant). Once issued, review the COI to make sure everything is accurate before sharing it with the requesting party.

Understanding ‘Additional Insureds’ and ‘Certificate Holders’

An ‘Additional Insured’ is a person or organization added to a policy for coverage. This is common in industries like construction, where project owners are added to a contractor’s policy for liability protection.

A ‘Certificate Holder’ is the entity requesting the COI to verify the insured party has the right coverage. Common examples include landlords, government agencies, or project owners.

Read more: 4 types of insurance you need as a general contractor

How to verify a certificate of insurance

Online tools and templates have made it very easy for individuals to produce counterfeit COIs with minimal effort. If COIs are not thoroughly verified, businesses or individuals may unknowingly accept fraudulent documents, exposing themselves to significant liability risks.

To confirm a COI is legitimate, you can: 

• Contact the listed insurance company or broker to verify the policy’s validity
• Ask for a copy of the full insurance policy
• Check that your name and address appear correctly as the certificate holder; and 
• Look for digital signatures or QR codes that allow online verification.

Some red flags to watch for include odd formatting, typos or grammatical errors, vague or missing details, or a missing authorized signature. If something seems off, reach out to the insurance provider directly to confirm the COI’s authenticity.

Make sure you have the right documentation

A COI is essential for businesses and individuals, serving as proof of insurance and helping to meet legal and contractual requirements. Whether you’re a contractor, a landlord, or hiring a service provider, having the right coverage — and the right paperwork — keeps things running smoothly, minimizes risk, and offers peace of mind for everyone involved.

Read next: I’m a freelancer – do I need freelance insurance?