A certificate of insurance (COI) is a standardized document issued by an insurance company or broker that summarizes the key coverage details of an active insurance policy. It is not the policy itself - it is a snapshot. That distinction is not semantic. It is the source of most compliance failures in contract management.
A certificate of insurance (COI) is a standardized document summarizing the key coverage details of an active insurance policy. It is not the policy itself - it is a snapshot, and that distinction is the source of most compliance failures.
When a vendor, contractor, or tenant hands you a COI, they are providing evidence that coverage existed at the time of issuance. Whether that coverage matches what your contract requires is a separate question - one that demands careful comparison.
What a Certificate of Insurance Contains
A standard COI, most commonly issued on the ACORD 25 form, includes the following information:
- Named insured - the entity or individual whose name appears on the policy
- Insurer name and NAIC code - identifies the carrier and allows you to verify financial ratings
- Policy number - the unique identifier for each coverage line
- Policy effective and expiration dates - the window during which coverage is active
- Coverage types and limits - general liability, commercial auto, workers' compensation, umbrella, and others
- Certificate holder - the party requesting proof of insurance, listed in the lower-left box
- Additional insured status - noted when the certificate holder or another party is added to the policy
- Waiver of subrogation - noted when the insurer waives its right to recover against a named party
- Description of operations - a free-text field where specific endorsements or project details are noted
What a COI does not contain: the actual policy language, endorsement wording, exclusions, or conditions. This is a critical limitation explored in more detail in the COI vs. insurance policy comparison.
Why Certificates of Insurance Matter in Contract Compliance
Every commercial contract involving a third party - vendor agreement, construction subcontract, commercial lease, service agreement - includes insurance requirements. Those requirements specify what types of coverage the counterparty must carry, at what limits, and under what conditions (such as naming you as an additional insured or including a waiver of subrogation).
The COI is the mechanism by which compliance with those requirements is demonstrated. When a vendor submits a COI, you are supposed to verify that:
- Each required coverage type is present
- Limits meet or exceed the contractual minimums
- Policy dates cover the relevant performance period
- Required endorsements (additional insured, waiver of subrogation, primary and non-contributory) are in place
- The named insured on the COI matches the entity named in your contract
If any of these elements is missing or mismatched, the contract's insurance requirements are not satisfied - regardless of what the COI says in the description of operations box.
Common Issues Found on Certificates of Insurance
Expired policies. A COI is a point-in-time document. If a policy lapses and no updated certificate is requested, you may be holding a document for coverage that no longer exists.
Wrong named insured. Vendors often operate under multiple entities. A COI showing coverage for "ABC Services LLC" provides no protection when your contract is with "ABC Services Inc."
Insufficient limits. A contract may require $2 million per occurrence for general liability. A COI showing $1 million per occurrence fails the requirement, even if the aggregate limit appears adequate.
Missing endorsements. Stating "additional insured included" in the description of operations box is not a substitute for an actual endorsement. Some contracts require specific endorsement forms - such as ISO CG 20 10 and CG 20 37 - to be verified.
Incorrect certificate holder. The certificate holder box must reflect the entity specified in your contract, including the correct legal name and address.
Waiver of subrogation absent. Many contracts require a waiver of subrogation on all coverage lines. If it appears only on general liability but not workers' compensation, the requirement is not fully met.
What to Check When Reviewing a COI
When you receive a certificate, compare it line by line against your contract's insurance exhibit or requirements section. The process is not about confirming that insurance exists - it is about confirming that the right insurance exists, in the right amounts, with the right provisions.
Check each coverage line independently. A compliant general liability certificate does not compensate for a non-compliant workers' compensation section. Verify dates against your project or lease term. Confirm carrier ratings if your contract specifies a minimum A.M. Best rating.
The COI tracking process formalizes this review on an ongoing basis, particularly for organizations managing large vendor or tenant populations where certificates expire on rolling schedules.
How Bramble Helps
Bramble reads both your contracts and the COIs submitted against them, then compares them requirement by requirement - flagging gaps in coverage type, limit shortfalls, missing endorsements, expired policies, and named insured mismatches automatically. Instead of manually cross-referencing documents, compliance teams get a clear, auditable record of what was required, what was submitted, and where the gaps are.
Stop managing compliance with spreadsheets and manual review. Visit getbramble.com to see how Bramble handles contract-vs-COI compliance at scale.