Certificates of Insurance, commonly called COIs, are one of the most misunderstood documents in the construction industry. A certificate generally provides a snapshot of insurance coverage that exists at a particular point in time, including policy types, limits, insurance companies, and effective dates. However, a certificate itself typically does not create coverage, change the policy, or automatically give the certificate holder additional rights under the insurance contract.
This distinction matters because many contractors, property owners, and general contractors assume that being listed on a certificate means they are fully protected. That is not necessarily true. If a contract requires additional insured status, waiver of subrogation, primary and noncontributory wording, completed-operations protection, or specific limits, those requirements may need to be supported by the actual policy language and endorsements. Simply typing a company’s name into the certificate-holder box does not automatically provide those protections.
Contractors should treat certificates as evidence of insurance—not as a substitute for reviewing contractual insurance requirements. Before beginning a project, compare the contract requirements against the actual policies and endorsements in place. This is especially important when working for larger general contractors, property managers, municipalities, or commercial property owners with detailed insurance specifications. A certificate may look perfect on paper while the underlying policy contains exclusions or limitations that create a serious coverage gap when a claim occurs.
Stay Tuned For Other Great Reads In This Month’s Newsletter
- Why Contractors Struggle to Get Coverage for Tract Housing Work
- Insuring Seasonal or Part-Time Employees in Oklahoma
Connect with us Oklahoma Insurance Group