A customer, landlord, or general contractor may ask for a certificate of insurance before you begin work. Commonly called a COI, it provides evidence of certain insurance coverage. It is not the insurance policy itself.
What does a certificate show?
A typical liability certificate identifies the insured business, insurer, policy numbers, policy dates, coverage types, limits, and the certificate holder. Review the business name, policy period, and requested limits carefully. The underlying policy and endorsements control coverage, not a description typed onto the certificate.
Certificate holder is not the same as additional insured
The certificate holder is the party receiving the evidence of insurance. Being listed there does not automatically make that party an insured. Additional-insured status must be supported by the policy or an applicable endorsement, and it is subject to that wording and its conditions.
A certificate cannot add missing coverage
Illinois law prohibits using a certificate to amend, extend, or alter a policy's coverage. It also prohibits a certificate from guaranteeing that a policy satisfies a contract's insurance or indemnification requirements. Listing a party on a certificate does not, by itself, create rights to cancellation or nonrenewal notice.
For example, suppose a customer requests $2 million per occurrence but your policy provides $1 million per occurrence. An agent cannot solve the difference simply by typing $2 million on a COI. The actual coverage and any acceptable additional policy must be reviewed.
What should you send to your agent?
Provide the requesting party's full legal name and address, the written insurance requirements, the job or project details, and the date needed. Requests may include additional-insured status, primary and noncontributory treatment, or a waiver of subrogation. Ask your agent to check the underlying terms instead of assuming the certificate alone supplies them.
For a policy serviced elsewhere, contact the issuing agency or insurer for evidence of that coverage. A new agency cannot assume authority to change or certify another agency's policy.
How J&L can help
We take time to review insurance requirements and explain what may need further attention. For policies we service, we can assist with appropriate certificates and endorsement requests, subject to coverage and our authority. For other policies, we can discuss a review and direct you to the appropriate servicing contact.
