If you have ever been asked to provide proof of workers comp insurance before starting a job or signing a contract, you have been asked for a certificate of insurance. Here is what a COI is, what it shows, and why it matters for both the businesses that provide them and those that request them.
What Is a Certificate of Insurance?
A certificate of insurance, commonly called a COI or ACORD certificate, is a one-page document that summarizes your insurance coverage. For workers comp, it shows the carrier name, policy number, effective and expiration dates, and the states where coverage applies. It is not the policy itself — it is a snapshot of coverage at a point in time.
Why General Contractors and Property Owners Require COIs
When a general contractor hires a subcontractor, or when a property owner hires a contractor, they face a potential risk: if the sub or contractor does not have their own workers comp coverage and a worker is injured, that liability can flow up to the party who hired them. Requiring a COI before work begins is the standard way to verify that coverage is in place and to protect against that exposure.
What to Look For on a COI You Receive
When you receive a COI from a contractor or sub, verify that the policy is still active by checking the expiration date. Make sure the coverage applies in your state. Confirm the carrier is a legitimate licensed insurer. Expired COIs or COIs from carriers not licensed in your state provide no real protection.
How to Get a COI for Your Own Business
Your insurance agent can issue a certificate of insurance for your workers comp policy, usually within minutes. Contact Comp Matters Inc. at (631) 248-2500 and we will get your COI issued fast.
Recent Comments