Certificate of Insurance Requirements: What You Need to Know (2026)

What Is a Certificate of Insurance and When Is It Required?

A certificate of insurance (COI) is a one-page document that summarises the key details of an active insurance policy — coverage types, limits, effective dates, carrier name, and the insured's identifying information. It does not create or modify coverage. It proves coverage exists at the time of issuance. Landlords, general contractors, municipalities, event venues, and commercial clients routinely demand COIs before allowing anyone onto a job site, signing a lease, or awarding a contract.

COIs are not always legally mandated, but they are contractually mandatory in the vast majority of commercial relationships. Understanding what they require, who can demand them, and what "additional insured" language actually means prevents contractors and businesses from starting work without protection in place.

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Quick Answer: COI Requirements at a Glance

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The ACORD 25 Form: Industry Standard

Nearly all COIs in the United States use the ACORD 25 form, produced by the Association for Cooperative Operations Research and Development. ACORD 25 is a standardised one-page certificate that includes:

• Producer information — the insurance agent or broker issuing the certificate
• Insured name and address — the policyholder
• Insurers — carrier names and NAIC numbers for each policy
• Coverage types — General Liability, Commercial Auto, Workers' Compensation, Umbrella/Excess, and others
• Policy numbers and effective dates — coverage start and end
• Limits — each-occurrence, aggregate, per-employee limits as applicable
• Certificate holder — the party receiving the certificate (may also appear as additional insured)
• Description of operations — free-text field describing the specific project or relationship

A COI is not a policy. It summarises what a policy covers but does not itself provide any insurance protection. If the underlying policy lapses, cancels, or was never properly issued, the COI is meaningless as a protection instrument — though it may still create a breach of contract.

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Who Can Request a COI

General Contractors and Project Owners

On any construction, renovation, or maintenance project involving multiple parties, the general contractor or property owner is the central COI demander. Every subcontractor and vendor who accesses the job site is typically required to provide a COI naming the general contractor as an additional insured on the sub's general liability and commercial auto policies.

What GCs verify:

• Liability limits meet the contract minimum (often $1M per occurrence / $2M aggregate)
• Workers' comp is in place (waiver of subrogation often required)
• Umbrella coverage if the project requires it
• Certificate dates extend through the project completion date

Landlords

Commercial landlords routinely require tenants to maintain general liability insurance with the landlord named as additional insured. Minimum limits depend on the building type and tenant industry but typically range from $1M to $2M per occurrence.

Some residential landlords — particularly large multi-family operators — now require renters insurance COIs. This is a contractual requirement in the lease, not a state law in most jurisdictions, but failure to provide it can constitute a lease violation.

Municipalities

Cities and counties require COIs for:

• Special event permits (street fairs, outdoor concerts, markets)
• Right-of-way work permits (excavation, utility work, sidewalk repairs)
• Business license applications in some jurisdictions
• Contractor registration programs

Municipal minimums often exceed private-market minimums. A city may require $2M per occurrence for any work in a public right-of-way, regardless of the actual contractor size.

Gig Economy Platforms

Several on-demand work platforms require workers to carry and document insurance. TaskRabbit, Thumbtack, and similar platforms may require proof of general liability coverage before activating a service provider's account. The required minimums vary by platform and by the service category.

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Additional Insured Status: What It Means

When a certificate holder is listed as an additional insured, it means the certificate holder has coverage under the named insured's policy — not just documentation that the named insured has insurance.

Key distinctions:

Additional insured status is added by endorsement to the underlying policy, not just by listing someone on the certificate. A COI that claims additional insured status but is not backed by an actual policy endorsement creates a documentation mismatch — the COI may say "additional insured" but the policy may not actually extend that coverage.

This is a common and serious compliance gap. Request confirmation of the endorsement, not just the certificate.

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What Coverage Minimums Are Typically Required

Required limits vary by industry, project size, and client type. Common minimum thresholds:

Umbrella or excess liability coverage ($5M–$25M+) is required on larger construction projects, public infrastructure work, and contracts with major corporations.

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How to Get a COI

Step 1: Contact Your Insurance Agent or Broker

COIs are issued by the producer (agent or broker) who manages the policy. You cannot issue your own COI. The request goes to your insurance contact who then generates the ACORD 25 form from your active policy data.

Step 2: Provide Certificate Holder Information

You'll need to give your agent:

• The certificate holder's full legal name and address
• Whether they need to be listed as additional insured (and under which policies)
• Whether a waiver of subrogation is required
• The specific project or job description (for the Description of Operations field)
• Any special language requirements specified in the contract

Step 3: Verify Turnaround Time

Most agents issue standard COIs within 24–48 business hours. Larger brokerages often have dedicated certificate issuance teams that turn COIs around in hours. Complex certificates requiring endorsement review may take longer.

Step 4: Confirm the Certificate Before Submitting

Verify:

• All coverage types required by the contract are shown
• Limits meet the contractual minimums
• The policy dates extend through the required period
• The certificate holder and additional insured language is exactly as the requester specified
• Waiver of subrogation endorsement is noted if required

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Common Compliance Mistakes

Expired certificates. A COI with a past effective date proves nothing. Many contractors reuse old certificates without checking whether the underlying policy has renewed.

Wrong certificate holder name. Precise legal entity name matters. "ABC Corp" and "ABC Corporation" may cause a documentation dispute if a claim arises.

Missing endorsements. A certificate that says "additional insured" but isn't backed by an endorsement on the underlying policy. The certificate describes what the policy says — if the endorsement isn't there, the AI coverage isn't there.

Insufficient limits. Providing a COI with $500,000 limits when the contract requires $1,000,000. The certificate satisfies a checkbox but the underlying contract requirement isn't met.

Short-dated certificates. The certificate dates don't extend through the project completion. If work runs over, the COI is technically out of date even if the policy has renewed.

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State-Specific Notes

No federal law mandates COI requirements. However, several state-level rules affect COI practice:

• New York — has some of the most aggressive additional insured endorsement requirements in the country for construction projects, driven by Labor Law 240 (the "Scaffold Law"), which creates near-absolute liability for falls on construction sites.
• California — contractors working on public projects must follow California's public contract code for insurance documentation. The state also restricts certain indemnification language that can affect how additional insured endorsements are drafted.
• Texas — one of the few states where workers' compensation is not mandatory for private employers. Contractors must verify whether a Texas sub is "non-subscriber" and adjust their own risk accordingly.
• Florida — contractor registration programs require COIs as part of the licensing application. The state also has specific requirements around commercial GL for roofing contractors.

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Frequently Asked Questions

What is the difference between a COI and a certificate of liability insurance?

They are the same thing. "Certificate of liability insurance" and "certificate of insurance" refer to the same ACORD 25 document. The full form may carry either name depending on which coverage types are shown.

Can I be held liable if the contractor I hired doesn't have insurance?

Depending on state law and the nature of the work, yes. If a contractor you hired injures a third party and has no insurance, the injured party may pursue you as the property owner or the party who hired the contractor. Requiring and verifying COIs before work begins is a basic risk management step.

Do I need a COI if I'm a sole proprietor?

Yes, if your clients or job sites require one. The size or structure of your business doesn't affect the COI requirement — if a general contractor or property owner requires a COI as a condition of entering the site, you need one regardless of your business structure.

How long should I keep COIs from subcontractors I hired?

Best practice is to retain COIs for at least the length of the project plus any applicable statute of limitations for claims arising from that project. In many states, construction defect statutes of repose extend 6–10 years. Retaining COIs for 7–10 years is common for larger projects.

What happens if a subcontractor provides a fake COI?

Fraudulent insurance documentation is a criminal matter. It also creates significant legal exposure for the sub. If a claim arises and the COI was fraudulent, the general contractor may pursue the subcontractor directly and may also have a bad-faith claim basis. Some insurers now offer COI verification services to authenticate certificates in real time.

Can a certificate of insurance be sent digitally?

Yes. ACORD 25 forms are routinely delivered by email as PDF documents. Many certificate management platforms (Redhand, myCOI, Docufree) enable digital certificate issuance, tracking, and compliance verification at scale for companies managing large contractor networks.

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Key Takeaways

• A COI proves coverage exists — it does not create or modify coverage, and does not replace reading the actual policy.
• ACORD 25 is the industry-standard form used across virtually all US commercial insurance transactions.
• Additional insured status requires a policy endorsement, not just a notation on the certificate — always verify the endorsement exists.
• Certificate holders, additional insureds, loss payees, and waiver of subrogation are distinct roles with different legal implications.
• Municipalities, GCs, and commercial landlords are the three most common mandatory COI requestors.
• Common mistakes — expired certs, wrong entity names, missing endorsements, and mismatched limits — create compliance gaps that only become visible after a claim.
• No federal COI law exists — requirements are driven by contract terms and state contractor licensing rules.

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Sources

• ACORD — Certificate of Insurance (ACORD 25) Technical Reference
• Insurance Information Institute (III) — Commercial Insurance Documentation Practices
• New York Department of Financial Services — Construction Insurance Requirements
• California Department of Industrial Relations — Contractor Insurance and Licensing
• Florida Department of Business and Professional Regulation — Contractor Registration Requirements
• Texas Department of Insurance — Workers' Compensation Non-Subscriber Information

Last verified: 2026-04

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Important Disclaimer

This guide provides general information about insurance requirements based on publicly available sources as of the "Last verified" date above. It is not legal, insurance, or financial advice. Requirements, penalties, and statutes can change; individual circumstances vary. Always confirm current rules with your state's Department of Insurance or DMV, and consult a licensed insurance professional for advice specific to your situation.