What Is a Certificate of Insurance (COI) for Contractors?

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For contractors and construction professionals, it includes details about your policy, such as the types of coverage your policy features, including general liability insurance, errors and omissions (E&O) insurance (also called professional liability insurance), and commercial auto insurance. It also provides quick details about the coverage limits and who the insured parties are.

For example, a typical certificate of insurance includes:

• The name of the brokerage you purchased coverage from, its address and contact information
• The name of the insurance company underwriting your policy
• Your name and the address of your business or the organization that names you as an additional insured to their policy
• The insurance policy’s number
• A description of the coverages on your policy and the amount of coverage the policy has
• The policy expiration date

More than just a document, a certificate of insurance is a powerful compliance tool. It’s the key to verifying that your liability risks are adequately covered, giving you and your clients peace of mind..

When Would a Contractor Need to Show a Certificate of Insurance (COI)?

There are multiple instances when a contractor may need to produce a certificate of insurance, including:

• It’s often a legal requirement to have a valid certificate of insurance when bidding on new projects. It gives potential customers and partners confidence you are covered and indemnifies them from work-related accidents or unexpected incidents that could cause them financial harm.

• If you’re working as a subcontractor on another contractor’s project, you may be asked to show a certificate of insurance before a contractor hires you to work on a job site.

• If your contracting or construction business seeks a loan from a financial institution, a financial organization or bank will likely ask for a copy of your certificate of insurance.

• When obtaining building permits from local authorities, contractors are required to show a certificate of insurance before a permit will be issued for a particular job.

• If renting or leasing tools, equipment, or vehicles or temporarily occupying a building or venue for a job, the rental or leasing company will ask for a copy of your certificate of insurance before renting the equipment you need or allowing you to use or work at their property.

A certificate of insurance also includes details about who the additional insured endorsements are on your contractor insurance policy.

 An additional insured is a person or organization you include on your policy to extend your coverage to them. For example, a customer may be listed on your certificate of insurance as an additional insured to protect their finances should an incident or accident occur during or after the project.

Is a Certificate of Insurance (COI) for Contractors the Same as an Insurance Policy?

No. A certificate of insurance is a summary of your liability insurance coverage but does not include the same depth of detail as your insurance policy documents.

That summary provides an overview of what coverages you have, the coverage limits, exclusions, who the additional insureds are (if any), and the date when your insurance expires.

It’s also prudent for general contractors to ask any subcontractors they intend to hire for a project to provide them with their certificates of insurance before permitting them to work at any job site.

What Happens If Your Liability Insurance Expires During a Project?

If your contractor insurance policy expires or lapses during an ongoing project, you are potentially exposing your finances and any additional insureds on your policy to financial harm if an accident or unexpected incident (like a fire) causes damages.

A contractor whose policy expires mid-project could also face legal repercussions.

Avoid this unpleasant scenario by ensuring your policy is up-to-date and active and by being aware of its expiration date.   

How Long Should a Certificate of Insurance (COI) for Contractors Be Retained?

At a minimum, a contractor should retain a valid certificate of insurance and coverage for themselves and their additional insureds for the duration of each and every project they are hired for to provide their services.

However, it’s not just about meeting the minimum requirements. It’s about being prepared for any eventuality. We recommend that contractors and construction professionals maintain their coverage year-round. A claim against you for damages could arise months or even years after you completed work on a project. Most contractor insurance policies include coverage for completed operations to address this specific risk.

How Can Contractors Obtain a Certificate of Insurance (COI)?

To get a valid certificate of insurance, contractors and construction professionals must purchase a contractor’s insurance policy. After obtaining the coverage you need, a Zensurance broker will issue you your policy documents and a certificate of insurance.

Complete our online application (it only takes five minutes) to get a free quote for contractor insurance.

Our team of knowledgeable brokers will shop our partner network of over 50 insurers to find the comprehensive coverage you require and customize it to suit your requirements and budget. If you have questions about what your policy should include, a Zensurance broker would be happy to discuss your options with you.

Learn more about:

• Ontario Contractors insurance
• BC Contractors insurance
• Alberta Contractors insurance