As a business owner, you’re focused on growth, service, and reputation. But in today’s world, having proper insurance isn’t just smart—it’s essential. One of the most common documents requested in the business world is a Certificate of Insurance (COI). If you’re wondering whether your business needs one, the answer is most likely yes.
What Is a Certificate of Insurance?
A Certificate of Insurance is a one-page document that proves your business has an active insurance policy. It summarizes key details like the type of coverage, policy limits, effective dates, and the insurance carrier providing it. While it’s not a policy itself, it serves as proof that you’re protected—and more importantly, that those working with you are protected too.
When Do You Need a COI?
There are several situations where your business may be required to present a Certificate of Insurance. Here are the most common:
1. When Working with Clients or Contractors
If you’re a contractor, consultant, or service provider, clients will often request a COI before you can begin work. This protects them in case your work results in property damage, bodily injury, or a legal dispute.
2. When Leasing Commercial Property
Landlords typically require proof of general liability and property insurance. A COI shows them that you’re a responsible tenant who won’t leave them exposed in case of an accident.
3. When Bidding on Contracts
Many government agencies and large corporations require a COI before awarding contracts. Without it, you may be passed over for opportunities—even if you’re the most qualified provider.
4. When Hosting Events
Planning a business event, trade show, or festival? Venues and city governments often won’t approve permits or space rentals without a COI showing liability insurance.
5. When Hiring Subcontractors
If you hire subcontractors, it’s your responsibility to ensure they have their own insurance coverage. Collecting a COI from them ensures you’re not liable for their mistakes or accidents.
What Types of Insurance Show Up on a COI?
Depending on your business, a COI might include:
- General Liability Insurance
- Commercial Property Insurance
- Professional Liability (E&O)
- Workers’ Compensation
- Commercial Auto Insurance
- Umbrella Coverage
How Do You Get a COI?
Getting a Certificate of Insurance is easy. If you’re already insured, just request one from your insurance provider or broker. At Eugene C. Yates Insurance Agency, we make the process quick and hassle-free—often delivering your COI the same day.
Final Thoughts
If you’re doing business in any capacity—whether it’s leasing space, landing contracts, or hiring help—you need a Certificate of Insurance. It’s a simple document that opens doors, builds trust, and protects your business reputation.
Need help getting a COI or not sure if your current coverage is enough? Our Sacramento-based insurance agents are ready to guide you through the process.