Construction COI: Why It Matters & How to Get One

Before you can start a construction job, the project owner or general contractor may ask for a certificate of insurance, or COI. A COI in construction summarizes your business insurance and helps the person hiring you check whether your coverage meets the project’s requirements. 

Getting a construction COI can be straightforward when you already have the right insurance. The process requires more attention when a contract calls for higher limits, additional insured status, or specific endorsements. Here’s what to check and how to get the documents you need.

What is a construction COI?

A COI in construction gives project owners and general contractors a way to review a contractor’s insurance information before work begins. It can also help you demonstrate that you have the coverage a contract requires.

It is evidence of insurance, not an insurance policy. A certificate does not change your coverage or give someone rights that are not provided by the underlying policy.

For example, a general contractor may ask an electrical subcontractor for a COI showing general liability and workers’ compensation coverage before allowing the subcontractor to begin work.

Why a construction COI matters

Contractors may be asked for proof of insurance when submitting bids, signing agreements, or meeting licensing requirements. Having the correct documents ready can help prevent paperwork from holding up the next step.

However, a COI does not guarantee that every claim will be covered or that every contract requirement has been met. When a project requires specific policy terms, the person reviewing your insurance may also need copies of the relevant endorsements.

When do contractors need a COI?

You may need a construction COI when you:

• Submit a bid that requires proof of insurance.
• Sign a contract with a project owner or general contractor.
• Begin work as a subcontractor.
• Apply for or renew a license that requires evidence of coverage.

The exact requirements depend on the contract, location, and type of work. Ask for the insurance requirements early so you have time to address any gaps.

If you hire subcontractors, you may also need to collect and review their certificates before they start work. Check that the insured business name, coverage, limits, and dates match your requirements.

What information appears on a construction COI?

A liability certificate commonly includes the following information:

Review the certificate against the project’s insurance requirements. If something is missing or incorrect, ask the issuing provider to address it.

Certificate holder vs. additional insured

A project owner may ask to be listed as the certificate holder, an additional insured, or both. These terms serve different purposes.

Listing a general contractor as a certificate holder does not automatically make that contractor an additional insured. Additional insured coverage must come from the policy, typically through an endorsement.

How to get a construction COI

Step 1: Get the project’s insurance requirements

Ask the project owner or general contractor for the written requirements and any sample certificate they provide.

Identify the required policies, limits, certificate holder information, and endorsements. Sending these documents to your agent or insurer is more useful than simply asking for “a construction COI.”

Step 2: Compare the requirements with your coverage

Have your provider review whether your existing policies meet the requirements. If you need higher limits or additional coverage, arrange those changes before requesting the final certificate.

A COI cannot create coverage that your policy does not provide.

Step 3: Request the certificate and endorsements

Request the COI through your insurer, agent, or broker. Depending on the provider, you may be able to generate it through an online account or mobile app.

Supply the recipient’s correct legal name and address, along with any required project information. Special wording or endorsements may require a provider’s review rather than automatic issuance.

Step 4: Review and submit the documents

Check the business name, policies, limits, dates, and certificate holder information before submitting the certificate. Include any requested endorsements.

Ask the recipient to confirm acceptance before your scheduled start date. Keep a copy of the submitted documents and note when updated proof will be needed.

How much does a construction COI cost?

The cost of obtaining a COI in construction depends on your provider, though many issue certificates at no additional charge to policyholders. ERGO | Next offers unlimited COIs at no additional cost, The Hartford states that obtaining a certificate is free, and Thimble provides additional certificates without an extra charge.

The insurance behind the certificate still costs money. Increasing limits or adding certain endorsements may also increase your premium. For example, Thimble notes that adding completed operations coverage through certain endorsements may involve an additional premium.

Ask your provider to distinguish between the cost of issuing the document and the cost of changing your coverage.

Where to get a construction COI

Start with the provider handling your existing insurance. If you need coverage, these three providers are worth considering.

ERGO | Next

ERGO | Next is a good fit for eligible contractors who want to purchase coverage online and quickly provide proof of insurance. According to its contractor information sheet, contractors can typically quote, buy, and download a COI in under 10 minutes. Certificates are available instantly after purchase and can be accessed and shared through the app.

The provider lists general contractors, painters, carpenters, plumbers, roofers, HVAC technicians, and several other trades among those it covers. Available policies include general liability, tools and equipment, workers’ compensation, a business owner’s policy, and umbrella or excess coverage.

The Hartford

The Hartford offers construction insurance along with online certificate requests. It says policyholders can request a certificate in less than five minutes, with most available instantly. Phone and chat assistance are also available.

It is worth considering if you want online convenience with support when a certificate request needs attention.

Thimble

Thimble offers contractor insurance with coverage periods that can include an hour, day, month, or year. After purchase, it sends the policy and certificate to your inbox and provides additional COIs at no extra charge.

It may fit eligible contractors with occasional or project-based work. Before choosing a shorter coverage period, have the provider confirm that the policy meets the contract’s duration and coverage requirements.

Common construction COI mistakes to avoid

• Confusing certificate holder and additional insured status: Confirm which status the contract requires.
• Assuming the certificate changes coverage: Required protection must exist in the policy.
• Submitting incomplete documents: Include requested endorsements with the certificate.
• Using incorrect business or recipient names: Have the provider correct discrepancies.
• Waiting until work is scheduled to begin: Allow time for coverage changes and document review.

These checks help address common differences between proof of insurance and the coverage a project requires.

Bottom line

A COI in construction helps you show proof of insurance, but getting an acceptable certificate starts with understanding the project’s requirements. Send those requirements to your provider, confirm that your coverage meets them, and request any necessary endorsements alongside the certificate. 

If you need insurance first, ERGO | Next, The Hartford, and Thimble offer contractor coverage and convenient certificate access. Choose based on the coverage your work requires and the support you need to keep your paperwork current.

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