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Why they ask.
Before handing over keys, allowing work to begin, or approving a vendor, a landlord or customer may want to verify that your business carries the insurance required by the written agreement.
A Certificate of Insurance—commonly called a COI—summarizes certain policy information. It can help a requester review the insured business, insurer, policy types, dates, limits, and certificate holder. It is evidence of insurance, not the policy itself, and it does not create or change coverage.
A real transaction is waiting
A retail tenant may need a COI before taking possession of a storefront. A contractor may need one before entering a jobsite. A food truck or caterer may need one before serving at an event. Even when a policy is active, access can be delayed when the certificate or a required endorsement is missing.
General liability is often a contract requirement
Commercial leases, vendor agreements, and project contracts often require general liability insurance with specified limits. Those requirements vary. They are not one universal California rule for every tenant, contractor, or vendor. Depending on the operation, separate commercial auto, workers’ compensation, professional liability, property, liquor liability, umbrella, or other coverage may also be required.
Certificate holder is not additional insured
The certificate holder receives the certificate. That alone does not provide insured status. An additional insured receives only the protection provided by the policy language or an applicable endorsement, which may be limited to particular work, locations, operations, or relationships.
Do not rely only on the words “additional insured” appearing on a certificate. Confirm that the required endorsement applies, and provide it when the contract or requester requires a copy.
What a requester may require
- Commercial general liability with specified limits
- Additional insured status and a copy of the applicable endorsement
- Primary and noncontributory wording or a waiver of subrogation
- Commercial auto, workers’ compensation, employer’s liability, or umbrella coverage
- Specific wording identifying the project, location, operations, or contract
Some requests require insurer review, a policy change, different limits, or additional premium. A certificate cannot promise coverage that the policy does not provide.
Send the complete requirement early
- The certificate holder’s full legal name and address
- The lease, agreement, event instructions, or pages containing the insurance requirements
- The exact legal name of each party requesting additional insured status
- The project, event, or location details and relevant dates
- Requested endorsements, special wording, limits, submission instructions, and deadline
A straightforward certificate may be issued quickly, but special requests can require underwriting review. Sending an old certificate or only the customer’s name may not be enough.
Protect the opportunity
A COI connects insurance to a lease, job, event, or customer relationship. Reviewing the requirements early can reveal an issue involving limits, endorsements, or coverage while there is still time to address it.
When you are ready, start with our certificate of insurance request. Related reading: renters insurance for tenants, insurance for instructors who need a COI, and food truck certificates of insurance.
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