What is a Certificate of Liability Insurance (COI)?

In this Article:

• Why do I need a certificate of liability insurance?
• Why do some companies ask for a COI or ACORD certificate?
• How do you get a certificate of liability insurance form?
• Why is my client asking to be added to my certificate of liability insurance?
• How is this certificate issued?
• Download a sample ACORD 25 or Certificate of Insurance form
• Types of liability insurance often found on a Certificate of Liability form

A certificate of liability insurance (COI) is a critical document that proves your business has the insurance coverage needed to protect against potential liabilities. The one-page ACORD certificate of insurance summarizes essential information about your insurance policy, such as coverage types, policy numbers, insurance limits, and effective and expiration dates. Here’s everything you need to know about obtaining and using a COI.

Why do I need a certificate of liability insurance?

A certificate of insurance is requested when liability and large losses are a concern. For example, if you own a landscaping business, a client may require a certificate of insurance to prove that certain liabilities will be covered during the course of the project. No matter what kind of client you’re working with, having the right insurance policy and proof of insurance will protect you and your client and give you both peace of mind.

Why do some companies ask for a COI or ACORD certificate?

Sometimes proof of business insurance is required in order to win a client’s business. As a small business owner, your clients may ask you to provide an ACORD certificate of insurance, or COI. Clients want to see your ACORD certificate of liability insurance to be certain you are insured with the type and amount of small business insurance they require.

For example, a freelance event planner may need to provide a COI to a venue before hosting an event, ensuring liability for damages or injuries is covered. Similarly, contractors often need COIs to secure projects with property developers or government agencies.

Even if you haven’t been asked to show a certificate of insurance, it’s an added benefit of having proof of your small business coverage. Most insurance providers include the certificate in your initial insurance documents, but if not, they are required to provide one upon your request.

📢 Related:  Get a Hiscox ACORD certificate of insurance form

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How do you get a certificate of liability insurance form? How quickly can I get it?

The certificate of liability insurance is issued along with your policy and is one of the forms you receive when you purchase insurance for your business. Additionally, you can easily request this critical document by visiting the Manage Your Policy page and clicking 'Get a certificate'. Enter your policy number and email address, and the COI will be sent to your inbox typically within the same day. If you have any other need for a Certificates of Insurance, please contact one of our licensed advisors at 844-220-3487. 

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Why is my client asking to be added to my certificate of liability insurance?

Don’t be alarmed if the client also requests that they be added to your certificate as a certificate holder. This is a common request, and complying does not give them any legal rights under a certificate, because the certificate simply establishes that an insurance policy exists. The Certificate Holder will enjoy protection under a policy only if the policy is endorsed and he or she is named as an Additional Insured.

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How is this certificate issued?

ACORD certificates are governed by the Association for Cooperative Operations Research and Development, a nonprofit insurance industry organization that provides the standardized forms and certificates used by almost 90% of property and casualty insurance carriers in the U.S. 

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Download a sample ACORD 25 or Certificate of Insurance form

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Types of liability insurance often found on a Certificate of Liability form

Liability Insurance, sometimes known as commercial liability insurance, protects you in the event you are sued for claims that come within the coverage of your liability insurance policy. There are a few basic types of liability insurance and the type of insurance you choose depends on the details of your business. You may need more than one type of liability insurance.

• General liability insurance also known as commercial general liability (CGL) protects your business from another person or business’s claims of bodily injury, associated medical costs and damage to property. For instance, general liability insurance might cover costs if a customer slips and falls on your premises.
• Professional liability insurance is sometimes called errors and omissions (E&O) insurance. This is coverage for claims of negligence against businesses that provide professional and personal services. For example, professional liability insurance could protect you if you’re a consultant accused of providing incorrect advice that led to a client’s monetary loss.
• Business owners policy (BOP) is a combination of general liability and business property insurance. It covers theft or damage to your own business property as well as third-party claims of damage or injury.

💡✍️ As a small business owner protecting your business from risks helps you ensure the long-term success of your business. To assist you in your journey, Hiscox provides small business insurance that is meant to cover many of the challenges that you may face.

Protect your business with the right insurance coverage. Get a quote, and your business could be covered today. When you purchase insurance for your business, you’ll get a Certificate of Liability Insurance to prove you’re prepared for any project or client need. 

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