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Contracts & Legalaka: COIaka: insurance certificateaka: ACORD certificate

Certificate of Insurance

In Plain English

A document proving that a contractor has the required insurance coverage.

Definition

A certificate of insurance (COI) is a document issued by an insurer summarizing the key terms of a contractor's insurance policies, including coverage types, limits, and policy expiration dates. Owners and general contractors require COIs from contractors and subcontractors before allowing them to perform work. The COI confirms that required insurance is in force but is not a guarantee of coverage.

Why It Matters in Bidding

A current COI with the right limits, additional-insured endorsements, and waivers of subrogation is usually a condition of award and of every subcontractor's right to mobilize, so estimators and project teams confirm insurability before relying on a sub's number. An uninsurable or under-limit sub can derail buyout, force a higher-priced replacement, and expose the GC to liability and contract default.

Example

Before awarding the framing subcontract, a project manager requires a COI naming the owner and GC as additional insureds at the contract-specified limits, and holds mobilization until the document is verified.

Related Terms

ContractSubcontractIndemnificationHold Harmless Clause

Frequently Asked Questions

Prime contracts typically obligate the GC to carry and flow down specific insurance, so the GC must confirm each sub meets those limits and endorsement requirements before exposure begins. Allowing an uninsured or under-limit sub to mobilize transfers risk to the GC and can breach the prime contract, jeopardizing payment and indemnity protection.
Verify coverage types and limits match the contract, that the owner and GC are listed as additional insureds, that waivers of subrogation are included where required, and that policies are not expired. Because a COI only summarizes coverage and doesn't guarantee it, the endorsements themselves should be requested for critical scopes.
Yes. A sub that cannot meet the required limits or endorsements must buy additional coverage, raising their price, or be disqualified. Estimators should flag unusual insurance requirements during bidding so subs price them in, avoiding a buyout surprise where the apparent low bidder turns out to be uninsurable at the specified terms.

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