What to check on a certificate of insurance before you accept it

Before you accept a certificate of insurance, check five things against your contract: who is insured, by which insurer, for which types of cover, up to what limits and for what period. Then remember what the certificate cannot do. It is evidence that a policy existed on the day the certificate was issued, nothing more.

What is a certificate of insurance, and what can it not do?

A certificate of insurance (often shortened to COI) is a one- or two-page summary that a supplier’s insurer or broker issues to show a policy is in force. In Australia and New Zealand the same document is usually called a certificate of currency.

Regulators are clear about its limits. The Connecticut Insurance Department describes a certificate as evidence of insurance “in lieu of an actual copy of an insurance policy” that “confers no rights or benefits upon the third party certificate holder”, and says certificates “cannot be used to amend, expand or alter the terms” of the policy. New York’s Department of Financial Services takes the same position. Australian government guidance on certificates of currency makes the equivalent point: the certificate is evidence that a policy is in force at the date of issue, it does not set out the policy’s terms, conditions or exclusions, and where they differ the policy usually prevails.

What should you check on every certificate?

• Named insured. The insured’s legal name matches the entity you contract with, not just a trading name or a related company.
• Insurer. The insurer is named, not only the broker. In the UK, employers’ liability cover must come from an authorised insurer, which you can check on the Financial Conduct Authority register.
• Policy numbers. Each policy listed has a number you could quote to the insurer.
• Types of cover. The certificate lists every type your contract requires, for example general or public liability, professional indemnity, product liability, workers’ compensation or employers’ liability, and motor.
• Limits. Each limit meets your contract’s minimum, per occurrence and in aggregate where both apply. A certificate of currency issued for a contract may show only the limit that contract requires.
• Policy period. The effective and expiry dates cover the whole period of the work, or you have a plan to collect the renewal.
• Certificate holder. Your organisation’s name and address are correct.
• Additional insured or waiver wording. If your contract requires it, ask for the endorsement itself (see below).
• Issue date and issuer. The certificate is recent and comes from the insurer or broker, not retyped by the supplier.

Why is “additional insured” on the certificate not enough?

Because the certificate cannot create cover. The Connecticut bulletin explains that a certificate does not make the holder an additional insured: that status comes from being “named an ‘Additional Insured’ by endorsement” or by the policy’s own terms. If your contract requires additional-insured status or a waiver of subrogation, ask for a copy of the endorsement and check that it names you, or a class of parties that includes you.

Will anyone tell you if the policy is cancelled?

Usually not. The Connecticut bulletin states that a certificate holder “is owed no duty to be notified” if the policy is cancelled. A certificate you accepted in March tells you nothing about July. Track the expiry date, ask for a fresh certificate at every renewal, and ask again before a large or risky job starts.

What do insurance documents look like in each country?

How often should you ask for a new certificate?

• At every policy renewal, using the expiry date on the current certificate.
• Before significant work starts, if the last certificate is more than a few months old.
• Whenever the supplier changes insurer, legal entity or the scope of work.
• For Ontario clearances, before each payment period, since a clearance lasts up to 90 days.

A certificate check is documentary. It does not tell you whether the policy would respond to a particular claim. For that, read the policy wording or take advice from a broker or lawyer.

How does Vendarity help with insurance evidence?

Every new Vendarity workspace includes an insurance certificate of currency requirement whose review guidance asks the reviewer to confirm the named insured, the policy type and minimum limit, the insurer and the period of cover. The reviewer records the insured entity, insurer, policy number and policy dates beside the file; with AI switched on, those fields can be proposed with page citations for the reviewer to confirm. Renewal follow-ups are then scheduled ahead of the expiry date.

Vendarity records that a person checked the document. It does not assess whether the cover is adequate or whether a claim would be paid. See what Vendarity does and does not do.