How to Get a Certificate of Insurance (COI) for Your Small Business: A Step‑by‑Step Guide
What Is a Certificate of Insurance?
A certificate of insurance (COI) summarizes your insurance coverage and proves to clients, landlords or lenders that you carry certain policies. It lists policy types, coverage limits, effective dates and the insurer’s contact information. COIs are typically free and available after purchasing a policy.
Why You Need a COI
- Contract requirements: Many clients and landlords require proof of liability insurance before work can begin.
- Risk management: A COI verifies that your contractors and vendors have adequate coverage, reducing your potential liability.
- Professionalism: Quickly providing a COI demonstrates credibility and may help you secure contracts.
Steps to Obtain a COI for New Policies
- Complete an insurance application. Provide details about your business operations, revenue, payroll and claims history.
- Compare quotes. Review policy types (general liability, professional liability, workers’ comp, etc.), limits and premiums.
- Purchase the policy. Pay the first premium to activate your coverage.
- Download the COI. Many carriers provide immediate access to COIs through their online portals. If not, contact your agent.
Steps for Existing Policyholders
- Log into your account. Use your policy number and business details to access your insurer’s portal.
- Complete the certificate request form. Provide the certificate holder’s name, address and any special wording required.
- Receive the COI. Insurers typically issue COIs via email within minutes. Some states allow electronic certificates.
Tips for Working With Certificates
- Verify coverage details. When hiring subcontractors, request a COI and confirm their limits meet your contractual requirements.
- Avoid fraudulent certificates. Contact the insurer directly if you suspect a COI is not legitimate.
- Stay organized. Maintain a file of all certificates you issue and receive for easier renewals and compliance.
What Does a COI Cost?
Most insurers issue COIs at no additional cost, though premiums for the underlying policies vary. General liability policies for small businesses can start around $42 per month, but the price depends on the industry, size, location and coverage limits.
Conclusion
A certificate of insurance is essential whenever a client or landlord needs proof of coverage. The process is straightforward: apply for a policy, purchase coverage and request a certificate through your insurer’s portal or agent. For existing policyholders, most insurers can issue a certificate within minutes. As you shop for coverage, quickly compare small business insurance quotes to find affordable policies that keep your business protected and make it easy to obtain a COI on demand.
