If you work in insurance, you issue and receive certificates of insurance (COIs) constantly. Contractors need them before they can break ground. Tenants need them before they can sign a lease. Vendors need them before a venue will let them in. Despite how routine they are, COIs are also one of the biggest sources of errors, delays, and E&O exposure in a typical agency's week.
This guide explains exactly what a COI is, what it contains, who requests one and why, the most common mistakes brokers make issuing them, and how to manage high volumes without letting the queue back up.
What a COI Actually Is
A certificate of insurance is a standardized summary document — most commonly the ACORD 25 form for general liability and the ACORD 28 for commercial property — that confirms a policy is in force. It lists the insured's name, the carrier, the policy number, coverage types, limits, effective and expiration dates, and any named additional insureds or certificate holders.
The critical legal point: a COI is evidence of insurance, not the policy itself. The language at the bottom of every ACORD 25 makes this explicit — "This certificate is issued as a matter of information only and confers no rights upon the certificate holder." A COI cannot alter coverage, expand limits, or create obligations that do not already exist in the underlying policy.
Who Requests a COI and Why
Certificate requests come from many directions, and each requester has a slightly different motivation:
- General contractors and project owners — Need proof that subcontractors carry adequate general liability and workers' compensation before allowing them on a job site. New York City projects involving the DOB, DOT, NYCHA, or school districts often require specific certificate language and additional insured endorsements.
- Landlords and property managers — Require tenants and contractors to show proof of liability coverage before executing a lease or granting access.
- Event venues — Require vendors, caterers, and entertainment companies to present a COI naming the venue as an additional insured before the event date.
- Lenders and financial institutions — Require evidence of property coverage, often naming themselves as a loss payee on commercial real estate loans.
- Government agencies — Municipal contracts frequently require certificates with specific minimum limits, additional insured language, and waiver of subrogation endorsements.
- Franchise agreements and vendor contracts — Many franchise agreements and vendor relationships require ongoing annual certificates confirming coverage remains in force.
What Is on a COI: Field by Field
Understanding each field on an ACORD 25 prevents the errors that generate callbacks and complaints:
- Producer — Your agency's name and contact information.
- Insured — The named insured on the policy, exactly as it appears on the policy declarations page. Mismatches between the COI name and the policy name are a common source of rejection.
- Insurers — The carrier's name and NAIC number. Some certificate holders verify the NAIC number against the AM Best directory.
- Type of insurance / limits — Coverage type (GL, auto, workers' comp, umbrella, etc.) and the applicable limits. Verify limits against the current policy — never copy from a prior certificate without checking the renewal declarations.
- Policy number and effective dates — Must match the current in-force policy exactly. Issuing a COI with an expired policy number is a serious E&O exposure.
- Certificate holder — The entity requesting proof of insurance. The certificate holder has no rights under the policy unless they are also named as an additional insured.
- Additional insured — When a party requires additional insured status, the policy must carry an AI endorsement before you can check this box. You cannot grant AI status on a COI without the underlying endorsement.
- Description of operations — Free-text field used for project-specific language, waiver of subrogation notices, or additional insured descriptions. This is the field most often customized per requester and the most common source of disputes.
The Most Common COI Mistakes
Agency E&O claims related to certificates typically fall into a handful of patterns:
- Checking the "Additional Insured" box without a policy endorsement. If the underlying policy does not carry an AI endorsement, the certificate is inaccurate regardless of what the box says. This is the single most serious COI-related E&O exposure.
- Using expired policy data. At renewal, it is common to keep issuing certificates with old policy numbers until someone notices. A post-expiration COI implies coverage that may no longer be in place.
- Mismatched named insured. If the policy says "Smith Construction LLC" and the certificate says "Smith Construction," a diligent certificate holder can reject it. Use the exact legal entity name from the declarations.
- Copying limits from a prior year. Limits change at renewal. Always pull limits from the current-year declarations page, not from last year's certificate.
- Custom description language that expands coverage. Some requesters send template language that states coverage "is primary and non-contributory" or includes a waiver of subrogation. If the policy does not support these provisions, you cannot include them in the description field.
How Long Does COI Processing Take?
A straightforward COI — standard limits, no additional insured, no custom language — should take an experienced processor under five minutes once policy data is loaded in the AMS. The time sinks are:
- Custom description language that requires underwriter approval
- Additional insured requests that require a new endorsement to be bound first
- NY-specific projects (DOB, DOT, NYCHA) that require specific certificate forms or language
- Certificate holder name mismatches that require client confirmation
- Missing or incomplete policy data in the AMS requiring manual lookup
For agencies handling more than 20–30 COI requests per day, the queue becomes the agency's primary operational constraint. See our guide on handling COI requests at scale and how to outsource COI processing to understand how specialist providers turn these around in 30 minutes or less.
Electronic COIs and ACORD Forms
Most agency management systems — Applied Epic, AMS360, EZLynx, HawkSoft — generate COIs electronically and allow them to be emailed directly to the certificate holder. Some systems also support integration with ACORD-compliant certificate delivery platforms. However, certain New York City agency projects still require wet-stamped or agency-letterhead certificates in addition to the ACORD form. Know your requester's specific requirements before assuming a PDF email will suffice.
New York-Specific COI Requirements
New York brokers face COI requirements that do not exist in most other states. Projects requiring approval from the NYC Department of Buildings, Department of Transportation, NYCHA, or school districts typically require certificates with:
- Specific minimum limits (often $1M/$2M for GL, $1M for auto, statutory WC)
- The City of New York named as an additional insured
- Language in the description field confirming the AI endorsement is primary and non-contributory
- A specific certificate holder address (sometimes down to the correct floor or department)
- NY Labor Law 240/241 endorsements for certain construction projects
Getting any of these details wrong results in a rejected certificate and delays the insured's ability to begin work — which generates an urgent callback and a frustrated client.
Clermont Global's certificate processing team is trained in New York-specific COI requirements and handles DOB, DOT, NYCHA, and school district certificates daily. Book a discovery call to discuss your certificate volume and current turnaround times.
