A certificate of insurance — almost always called a COI — is the single most requested document in commercial insurance. A general contractor will not let you on the jobsite without one. A hospital, hospice partner, or state Medicaid program will not activate your home care contract without one. A commercial landlord will not hand over keys without one.
This guide explains exactly what a COI is, what it does and does not do, how to read one, and the difference between a certificate holder and an additional insured — the distinction that causes more contract delays than anything else.
What is a certificate of insurance?
A certificate of insurance is a one-page summary of your insurance program issued by your broker or carrier. It lists your business name, your carriers, your policy numbers, the effective and expiration dates, and the limits for each line of coverage — typically general liability, workers' compensation, auto, professional liability, and umbrella.
The industry-standard form is the ACORD 25 for liability lines and the ACORD 101 for additional remarks. Workers' compensation appears on its own section of the same form.
Critically, a COI is evidence, not coverage. It confirms that a policy existed on the day it was issued. It does not amend the policy, add anyone to it, or guarantee the policy is still in force tomorrow. Anything a contract requires beyond proof — additional insured status, waiver of subrogation, primary and non-contributory wording — has to be endorsed onto the actual policy, and the COI just reflects that it was done.
Why clients require a COI
Risk transfer. If your crew damages a client's property or your caregiver injures a resident, the client wants your insurance to respond before theirs does. The COI is their first check that you have coverage capable of doing that.
Contract and licensing compliance. Most master service agreements, subcontractor agreements, staffing contracts, and commercial leases include an insurance schedule with minimum limits. Many state licensing boards require proof of coverage as a condition of the license.
Avoiding uninsured-subcontractor charges. General contractors collect COIs from every sub because, at their own workers' comp and general liability audit, any subcontractor without valid coverage gets charged back to the GC's payroll. That is why they chase certificates so aggressively.
Certificate holder vs. additional insured
This is the distinction that stalls the most contracts, and the two are not the same thing.
A certificate holder is simply the party the certificate was sent to. Listing someone as certificate holder gives them a copy of the document and, in most cases, notice if the policy cancels. It gives them no rights under your policy whatsoever. They cannot tender a claim to your carrier.
An additional insured is a party actually added to your policy by endorsement — typically CG 20 10 for ongoing operations and CG 20 37 for completed operations on the construction side. An additional insured can be defended and indemnified by your carrier for liability arising out of your work. That is real coverage, and it usually carries a premium or an endorsement fee.
So when a contract says "name us as additional insured," adding them as certificate holder is not compliance — the certificate will get rejected. Send your broker the contract's insurance section, not just the company name, so the correct endorsement gets attached before the COI is issued.
Other wording clients commonly demand
Waiver of subrogation. Stops your carrier from suing the client to recover what it paid on a claim. Common on construction and healthcare contracts, and it requires an endorsement.
Primary and non-contributory. Requires your policy to pay first, with the client's policy not contributing. Also an endorsement.
30-day notice of cancellation. Most modern forms provide notice to the first named insured only; carriers rarely agree to notify certificate holders directly. If a contract demands it, flag it early rather than at signing.
Per-project aggregate. Prevents one bad job from eroding limits available to every other client. Frequently required on larger construction contracts.
What contractors typically need on a COI
$1M per occurrence / $2M aggregate general liability is the near-universal baseline, often with $2M products-completed operations.
Workers' compensation at statutory limits with $1M employers liability — required even for small crews in most states, and required by the GC regardless.
Commercial auto at $1M combined single limit, including hired and non-owned auto if crews drive personal vehicles.
Additional insured status for the GC and, on many jobs, the property owner and lender, on both ongoing and completed operations, plus waiver of subrogation and primary/non-contributory wording.
An umbrella of $1M–$5M when the project value climbs. Buying an umbrella is almost always cheaper than raising underlying limits.
What home care agencies typically need on a COI
General liability at $1M/$3M, professional liability (medical malpractice / E&O) at $1M per claim, and workers' compensation at statutory limits with $1M employers liability.
Abuse and molestation coverage at $1M per occurrence — hospitals, hospice partners, assisted living facilities, and state Medicaid programs almost always require it, and many standard policies exclude or sublimit it.
Hired and non-owned auto, because caregivers drive their own cars between client homes.
An employee dishonesty bond, usually $10,000–$25,000, since caregivers work unsupervised inside client homes.
Additional insured status for the facility or referral partner, and cyber liability if you handle protected health information through an EMR or e-billing.
How to read a COI you receive
If you are the one collecting certificates from subcontractors or staffing partners, check five things: the named insured matches the legal entity on your contract exactly; the policy dates are current; the limits meet your contract's minimums; the additional insured and waiver boxes are checked with the endorsement forms listed in the description of operations; and the carrier is A-rated and admitted where required.
Then diary the expiration date. A COI that expires mid-project is the same as no COI at all, and chasing it after a loss is far too late.
Common COI mistakes that lose contracts
Sending the certificate holder when the contract asked for additional insured. The most common rejection by a wide margin.
A DBA or slightly different legal name than the contract, which invalidates the document in the client's compliance system.
Limits below the contract minimum with no umbrella listed.
An expired certificate pulled from an old email thread.
Requesting the COI the day work starts. Endorsements take carrier processing time — if additional insured wording is needed, ask 48 hours ahead where possible.
Get a same-day certificate of insurance from KTL
KTL issues certificates of insurance the same business day for active clients — including additional insured, waiver of subrogation, and primary and non-contributory wording when your policy supports it. Send us the client's name, address, and the insurance section of the contract, and we will match the wording exactly so it is not kicked back.
Not a client yet? Request a free quote and we will benchmark your program across 20+ A-rated carriers, then handle your certificates from there.