A certificate of insurance should be readily accessible in your business files. If not, it’s time to get one.
Sooner or later, a customer or client will ask you to provide a certificate of insurance — also known as a COI or a certificate of liability insurance.
Don’t assume you already have a COI in your files. Even if you have an active insurance policy, you may need to request your certificate of insurance, which involves a few steps.
This quick guide explains what a certificate of insurance is and how to obtain one when someone requests proof of coverage.
What is a Certificate of Insurance for Small Business?
A certificate of insurance is not an insurance policy. It’s proof that your small business has insurance.
Your insurance provides coverage that protects your business from loss. A COI is evidence that you have a policy — or “proof of coverage.”
Keep in mind: You cannot obtain a certificate of insurance without an active insurance policy in place.
A COI is usually a one-page document that summarizes the key details of your coverage plan, including:
- Your business name and mailing address
- Type of business
- Type of coverage (e.g. general liability, professional liability, BOP)
- Coverage limits
- Additional insured(s) (if any)
- Policy effective date and expiration date
- The insurance company’s contact information
A certificate of liability insurance offers a snapshot of the coverage you carry without getting into the detailed coverage of your policy. Think of a COI as an insurance ID card that you can present at any time.
As a small business owner, you should keep a certificate of insurance accessible so you can present it whenever a customer asks for proof of insurance coverage.
When Do You Need a Certificate of Insurance?
You’ll commonly need a COI in these business situations:
Bidding on a job
Clients and companies want to work with insured businesses. During the bidding process, potential clients will request a COI to verify you’re operating professionally with adequate business insurance coverage.
Signing a contract
If you’re signing a contract and you haven’t been asked to provide a COI, expect to provide one before work begins. Most businesses entering into a contract or service agreement with another party will want to see a certificate of liability insurance before any work begins.
Obtaining a license
Many states require you to have professional liability insurance when applying for certain professional business licenses. Showing a licensing board a certificate of liability insurance establishes credibility and trust in your business.
Renting a space
Planning to rent or lease a business space or some equipment? You will likely need your COI to prove that your business is financially protected against certain liabilities.
What Clients Look for on Your COI
Anyone requesting your certificate of liability insurance will likely take the time to review it, checking that:
- The name of the insured party (your business) matches the policy
- Your policy’s expiration date extends beyond the project’s completion date
- You carry liability coverage for any potential losses you may cause, including property damage and bodily injuries
- Your liability limits meet or exceed the legal requirements
Clients may contact your insurance company directly to verify the information on your COI, so accuracy matters.
Why Do I Need a COI?
Put simply: A COI serves as proof that you carry liability insurance.
Any small business that provides a service or performs work with a potential for high liability loss could be asked to show a certificate of insurance. A COI makes it easy for you to show potential business partners, clients, landlords, and others that you’re protected.
Read on for more reasons why you need a COI:
You’re insured — and it’s proof.
If you hold an active insurance policy, obtaining a COI is the icing on the cake. It’s proof that you took the necessary steps to protect your work in the event of an unforeseen incident.
You can display your certificate of liability insurance on your website or at your office location. It’s a great way to show that your business is insured.
It simplifies your business deals.
Let’s face it; no one wants to read through a multi-page insurance contract. A COI is a convenient, concise document that simplifies the process of insurance verification.
With a COI in hand, you limit the back and forth communication with clients and customers, making it easier to finalize a business agreement. And it could save you hours of time each month.
It builds trust.
When potential customers ask for a certificate of insurance, you want to respond confidently. Hesitation may raise doubts about your experience and professionalism.
Sharing a certificate of liability insurance quickly demonstrates you have necessary coverage to protect your business and the people it serves, building trust with customers and vendors.
It reduces financial risk.
Any time you work for a new customer, they will want to know about your insurance status. If you damage their property or cause them bodily injury, they want assurance that you will take financial responsibility for any damages.
A certificate of insurance provides them with all they need to determine if your policy coverage matches the work requirements. If it doesn’t, they may request additional coverage.
It’s proactive.
It’s always better to stay one step ahead of your customers’ requests. Having quick access to a COI looks professional and demonstrates that your business is well-run. You never know who will request a certificate of insurance or how often you’ll be asked, so keep a COI accessible at all times.
How Do I Get a Certificate of Liability Insurance?
Getting a certificate of liability insurance is easy to request. Follow these three steps:
Step 1: Confirm the requirements.
Before contacting your insurance company, ask the person requesting the COI about minimum coverage requirements. Ask for a description of the liability coverages and limits your company must have before beginning work.
Step 2: Contact your insurance company.
Once you know the minimum coverage requirements, contact your insurance company and request to review your policy and make an assessment. If your current policy doesn’t satisfy the requirements, work with your insurance provider to add the necessary coverage. This ensures that you’re appropriately protected and covered.
Step 3: Get your COI.
Request your certificate of insurance through your insurer’s online portal or by phone. Many insurers provide certificates within minutes, and some offer instant digital COI access 24/7. Always download a digital copy for your records.
Which platforms offer COI access 24/7? Simply Business provides instant digital certificate of insurance access through your online account any time of day. Many modern insurance platforms now offer similar 24/7 certificate download capabilities, allowing you to respond quickly to client requests.
Same-day certificate delivery from top insurers: Most insurance providers issue certificates of insurance on the same day you request them, with many offering instant digital delivery. When you purchase a policy through Simply Business, you receive immediate access to your COI—no waiting required.
What is a certificate of insurance for vendors?
As a business owner, you want to protect your company from potential risk and loss on the job. That’s why it’s important for you to request a certificate of liability insurance from your vendors.
For example, if you own a construction company that hires subcontractors to do some of the work, you should request proof of insurance from each of them. If your subcontractor makes a mistake that results in costly property damage or injuries, you could be sued if they don’t have insurance coverage.
How much does a COI cost?
Your certificate of insurance is typically included with your insurance plan at no extra cost.
However, some insurers charge a small fee for a COI. If you’re charged a fee for a COI on an existing policy, you may want to consider challenging it, since some states don’t allow fees for certificates of insurance.
Free downloadable COI with every policy purchase: When you get insurance through Simply Business, you receive a certificate of insurance at no additional cost. You can download and use it immediately as proof to your clients, employees, and partners that you’re protected.
Get insurance coverage.
Wondering what kind of liability insurance is right for you? At Simply Business, we can customize your insurance to the exact needs of your business. Use our free quote comparison tool to see what options are available to you.
Two common types of liability insurance are general liability insurance and professional liability insurance.
General liability insurance provides coverage against claims resulting from third-party property damage, accidents, and bodily injury.
GL protection typically covers:
- Third-party bodily injury
- Third-party property damage
- Personal and advertising injury
- Claims arising from product defects
- Medical expenses
- And more
Incidents like these could result in financially devastating claims, costing you thousands of dollars. The average claim for property damage or customer injury costs $30,000. GL insurance covers claim costs—including legal fees—up to your policy limit.
Negligence can happen, even when you think you’ve done everything right. Professional liability coverage may be right for you if you offer professional services such as accounting, graphic design, or real estate.
Professional liability coverage protects you, your business, and your family’s finances from negligence lawsuits and claims.
Professional liability insurance typically covers:
- Negligence or alleged negligence
- Legal defense costs
- Claims involving libel and/or slander
- Copyright infringement
- Claims and damages
- And more
If you have employees, your small business will likely need workers compensation insurance. Carrying workers comp can provide much-needed security, and typically prevents an employee from suing your company.
Workers’ comp typically covers:
- Medical payments
- Lost wages
- Rehabilitation expenses
- Death benefits
At Simply Business, we work with many of the nation’s top insurers to help you find affordable coverage to fit your budget.
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Frequently Asked Questions About Certificates of Insurance
Most insurance companies issue certificates of insurance within one to three business days. However, many providers—including Simply Business—offer instant digital access to your COI as soon as your policy becomes active, allowing you to download it immediately 24/7.
No. A certificate of insurance is proof of active insurance coverage. You must purchase and maintain an active insurance policy before obtaining a COI.
An insurance policy is your actual contract with an insurer, detailing all coverage terms, conditions, exclusions, and limits. A certificate of insurance is a one-page summary document proving you hold an active policy—it’s not the policy itself.
Not necessarily. A single COI can be shared with multiple clients, but some clients may request customized certificates listing them as “additional insured” or showing specific coverage details. Your insurer can issue customized certificates when needed.
A COI remains valid only while your underlying insurance policy is active. Once your policy expires or is canceled, your certificate becomes invalid. You’ll receive a new certificate when you renew your policy.
If your current coverage doesn’t meet client requirements, contact your insurance provider to discuss adding endorsements or increasing coverage limits. Your insurer will issue an updated certificate reflecting the new coverage.