What Is a Certificate of Insurance?

By BRIX Editorial Team · Updated October 12, 2026

A certificate of insurance (COI) is a one-page summary, issued by an insurer or agent, showing that a business holds specific policies: the carriers, policy numbers, limits and dates. It is evidence of coverage, not a policy. It cannot change or extend what the policy covers, and it gives the holder no rights the policy doesn't already grant.

Key takeaways

A COI proves a policy existed on the date it was issued. It doesn't prove the policy is still in force or that a claim will be covered.
State law in Illinois and regulator guidance in Nebraska say a certificate cannot amend, extend or alter the policy it describes.
Licensing boards, GCs and property managers each have their own COI requirements, such as who is listed as certificate holder or additional insured.
Collect a current COI from every subcontractor before they start; uninsured subs often get charged to your policy at audit.
If a contract requires additional insured status or a waiver of subrogation, that has to be in a policy endorsement, not just on the certificate.

How does a certificate of insurance work?

A certificate of insurance works as a snapshot: your insurance agent fills out a standard form (most often the ACORD 25 for liability coverage) listing each policy, the insurer, the policy number, the effective and expiration dates, and the limits, and sends it to whoever asked. Illinois law defines it as "a document prepared by an insurer or insurance producer as evidence of property or casualty insurance coverage" and says it is not a policy, a binder or an endorsement.

Contractors deal with certificates in both directions. You provide one to get a license, pull a permit, sign a commercial contract or get on a property manager's vendor list. You collect them from every subcontractor so that a sub's injury or damage claim lands on the sub's policy, not yours.

What a COI does and doesn't prove

Reading a certificate of insurance
The certificate shows	What it actually tells you	What it doesn't tell you
Insurer and policy number	Who to call to verify coverage	Whether the policy has since been canceled for non-payment
Policy period	Coverage was in force on the issue date	Coverage will still be in force on your job date; check it again before work starts
Limits (per occurrence, aggregate)	The maximum the policy pays	How much of the aggregate other claims have already used up
Description of operations box	What the agent typed about your project	That the policy actually covers that work; exclusions live in the policy
Additional insured / waiver of subrogation checkboxes	That the agent says an endorsement exists	The endorsement's wording; ask for a copy

Two state sources put the limit plainly. Illinois: a certificate "may not amend, extend, or alter the coverage provided under" the policy it refers to, and nobody may require a certificate that warrants the policy complies with a contract's insurance requirements (215 ILCS 5/155.45). Nebraska's insurance department: certificates "are not actual policies of insurance, and they do not and cannot amend, extend, or alter insurance coverage."

Who asks for a certificate of insurance, and what do they require?

COI requirements from state boards and typical customers (checked 2026-10-12)
Who	What they want on the certificate	Source
Oregon Construction Contractors Board	Certificate holder listed as the CCB at its Salem PO Box; a statement that products and completed operations coverage is included; limits at or above the endorsement chart, such as $500,000 per occurrence for a residential general contractor.	Oregon CCB
Washington Labor & Industries	Proof of general liability of $250,000 combined single limit (or $200,000 public liability and $50,000 property damage) to register as a contractor, alongside the surety bond.	Washington L&I
Florida local building departments	Proof of public liability and property damage insurance (§ 489.115(5)) and workers' comp (§ 489.114); permits can be denied or suspended without it.	Fla. Stat. ch. 489
California homeowners	Not a certificate as such: home improvement contracts must include a notice naming the contractor's general liability insurer and a phone number to check coverage, or stating the contractor carries none.	CSLB, Contracting for Success
General contractors and property managers	Commonly $1 million per occurrence / $2 million aggregate general liability, workers' comp with employer's liability, commercial auto, the GC named as additional insured, and sometimes a waiver of subrogation and primary wording.	Typical contract terms, not law

Board requirements are law; customer requirements come from the contract. Read both before you bid.

State-by-state licensing and insurance rules are in our state guides, and the underlying policies are covered under general liability insurance and workers' compensation.

How to collect certificates from subcontractors

1
Ask before the sub starts, not at audit.
Your insurer will ask for every sub's certificate at the year-end audit. Subs with no coverage are often charged to your payroll or revenue base as if they were your employees.
2
Check the coverage lines.
General liability and workers' comp at minimum. Commercial auto if they drive to your sites. Match limits to what your own contract requires.
3
Check the dates.
The policy period has to cover the sub's time on your job. Set a reminder for the expiration date and request a renewal certificate.
4
Get the endorsements.
If your contract requires additional insured status flowing down to subs, ask for a copy of the endorsement, not just a checked box.
5
Verify with the agent or carrier.
A phone call to the number on the certificate catches canceled policies and forged certificates.
6
File it with the job.
Keep the certificate, the endorsement and the verification note with the subcontract so it's there at audit or after a claim.

Example (illustrative numbers): the expired sub certificate

A remodeling contractor hires a drywall sub for $22,000 of work across four jobs. The sub's certificate shows general liability and workers' comp through March 31.

In June, one of the sub's hangers falls from a scaffold on the contractor's job. The sub's workers' comp had lapsed in April for non-payment. The sub has no coverage, and the contractor's policy picks up the claim under the state's rules for uninsured subs, which pushes its experience mod up for the next three years.

At audit, the contractor's insurer also adds the sub's $22,000 of payments to the contractor's rated payroll because there was no valid certificate for the period. At an illustrative $8 per $100, that's another $1,760 in premium.

A calendar reminder on March 31 and a renewal certificate in April would have avoided both.

Certificate of insurance vs. additional insured endorsement vs. policy

The certificate is the summary. The policy is the contract that actually pays. An endorsement is an amendment to the policy, such as adding your customer as an additional insured so your policy defends them for claims arising from your work. Customers who need protection ask for the endorsement because, as Illinois and Nebraska both say, the certificate alone can't give them rights the policy doesn't contain.

Common certificate of insurance mistakes

Treating a certificate as proof for the whole job. It's a snapshot on the issue date. Re-check at renewal.
Accepting a checked box as an endorsement. Ask for the endorsement form itself.
Mismatched names. The named insured should be the legal entity that signed your subcontract.
Limits below your own contract. If your contract requires $1 million / $2 million and your sub carries $500,000, the gap is yours.
Asking your agent to "just write it in." Illinois law treats misleading certificates as an unfair practice, and your agent can't add coverage on a certificate.
Losing track of expirations. Certificates expire with the policies behind them, usually once a year.

Frequently asked questions

How do I get a certificate of insurance?

Ask your insurance agent. Give them the name and address of the certificate holder, any wording the contract requires, and the job description. Most agents issue standard certificates the same day. Endorsements such as additional insured status may take longer and can carry a charge.

Does a certificate of insurance expire?

The certificate itself has no expiration, but it only reflects the policies as of the date it was issued, and those policies expire, usually annually. Treat a certificate as stale once any listed policy period has ended, and request a new one at renewal.

What is the difference between a certificate holder and an additional insured?

A certificate holder just receives the certificate and, depending on the policy, may get notice of cancellation. An additional insured is added to the policy by endorsement and can be defended and covered under it for claims arising from your work. Only the endorsement creates coverage.

Can a certificate of insurance be faked?

Yes, which is why you should verify it. Call the agent or insurer at the number on the certificate, or check the carrier's verification tools where available. Illinois law makes issuing a certificate with false or misleading information an unfair insurance practice, but verification is still on you.

Do I need a certificate of insurance from a 1099 subcontractor?

You should collect one from every sub, however they're paid. Without a certificate showing general liability and workers' comp, your insurer may charge the sub's payments to your policy at audit, and some states can hold you responsible for the sub's injured workers.

What limits should a contractor's certificate show?

Enough to meet your state board and your contract. State minimums are low: Washington requires $250,000 combined single limit for registration, and Oregon $500,000 per occurrence for a residential general contractor. Most commercial customers require $1 million per occurrence and $2 million aggregate.

Sources

215 ILCS 5/155.45, Certificates of insurance (Illinois Insurance Code) (checked October 12, 2026)
Nebraska Department of Insurance, Guidance Document IGD-D3, Issuance of Certificates of Insurance (Oct. 20, 2022) (checked October 12, 2026)
Oregon CCB, CCB License (certificate of insurance requirements) (checked October 12, 2026)
Washington L&I, Register as a contractor (insurance requirements) (checked October 12, 2026)
Florida Statutes ch. 489, Contracting (§§ 489.114, 489.115) (checked October 12, 2026)
CSLB, Contracting for Success (home improvement contract insurance notices) (checked October 12, 2026)