How to Read a Certificate of Insurance: A Contractor's Field Guide

A certificate of insurance (COI) is a one-page document that every GC asks for — and few contractors fully understand. Here's how to read one field by field, and what to watch for before you hand yours to a client or accept one from a sub.

What a COI actually is

A certificate of insurance is a summary of your coverage at a point in time. It is NOT a policy amendment, NOT a guarantee of coverage, and NOT a legal contract. It tells you what's on the policy as of the date issued. Any misrepresentation by the agent is their error — it doesn't bind coverage that doesn't exist in the policy.

That disclaimer matters: always request the actual policy declarations pages and endorsements for anything important. The COI is the quick-check document; the policy is the source of truth.

The ACORD 25 — field by field

Producer (upper left)

Your agent or broker. Claims go to the carrier, not the producer — but the producer is your first call.

Insured

Your business name exactly as it appears on the policy. If your business operates under a DBA, both should appear. Lenders and project owners sometimes reject COIs if the insured name doesn't match the contracting entity.

Coverage table — the core fields

Carrier and NAIC #: The NAIC number identifies the exact carrier entity. Use it at naic.org to verify the carrier's rating and licensing in your state. Some GCs require A-rated carriers — the COI carrier must actually be A-rated, not just the parent company.

Policy number: Unique identifier for each coverage line. You'll reference this when filing a claim.

Policy effective and expiration dates: The coverage period. Any incident occurring outside these dates is not covered (for occurrence policies) or not eligible for claims reporting (for claims-made policies). Watch expiration closely on active projects.

Commercial General Liability (CGL):

• Each Occurrence: Maximum per single claim — commonly $1M
• General Aggregate: Maximum across all claims in the policy period — commonly $2M
• Products/Completed Operations Aggregate: Limit for post-completion claims — match it to the per-occurrence or higher
• Personal and Advertising Injury: Separate limit for Coverage B claims

Automobile Liability:

• Combined Single Limit: Single limit for BI and PD in auto claims
• Notes whether it covers Owned, Hired, and Non-Owned autos — verify all three boxes are checked if required

Umbrella/Excess Liability:

• Each Occurrence and Aggregate: Should match or exceed what your subcontract requires
• Retention: The SIR (self-insured retention) — if it's large, the umbrella is net-of-SIR

Workers' Compensation:

• WC and Employers' Liability: Confirms statutory WC coverage and the EL limits underneath it
• States: Lists states where coverage applies — ensure your project state is covered

Certificate holder (lower left)

The entity requiring the COI. This is NOT the same as an additional insured. The certificate holder gets notified if the policy cancels — nothing more.

Additional insured / special conditions (lower right)

One of the most important sections. If the project owner or GC requires AI status, it must appear here (or in an endorsement list). Common language: "ABC General Contractor, Inc. is included as an additional insured with respect to operations of the named insured."

If this section is blank and your subcontract requires AI status, the COI is incomplete. Request the actual AI endorsement form (CG 20 10, CG 20 37, or similar) to confirm.

What to check when you receive a COI from a sub

1. Verify carrier NAIC and rating at naic.org — does the carrier meet your contract requirement?
2. Check expiration dates — if the policy expires before your project ends, require notice of renewal
3. Verify the limits match your subcontract requirements — per-occurrence AND aggregate
4. Confirm AI status is listed if required — and get the endorsement number
5. Check for waivers of subrogation if your subcontract requires them
6. Verify primary and non-contributory language if your subcontract specifies it
7. Check that workers' comp covers your project state

What to check on your own COI before handing it over

1. Is your insured name exactly right? Typos, old DBAs, and missing LLC designations get COIs rejected
2. Are all required AI endorsements attached or referenced on the face?
3. Do the limits match what the subcontract actually requires? Read the contract before the COI request
4. Is the certificate holder exactly right? Get the entity's exact legal name from the contract

The 30-day cancellation notice

Most COIs include a line about providing 30 days' notice of cancellation. This is often preceded by "endeavor to" language that's standard but means the insurer isn't contractually bound. If your contract requires guaranteed notice, you'll need a specific endorsement — not just standard COI language.

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Contractors Choice Agency issues certificates fast — typically minutes after a bind. Call 844-967-5247 or get a quote online and we'll get you covered today.