In construction, a COI is a Certificate of Insurance: a one-page document from a contractor’s insurance broker that lists the contractor’s active policies, coverage limits, and expiration dates. It is the standard proof a general contractor, subcontractor, or property owner provides before work begins, and nearly every construction contract requires one. The catch, and the reason the document is so often misunderstood, is that a COI only reports what coverage existed on the day it was printed. It does not grant coverage to the person holding it.
What the ACORD 25 Form Shows
Almost every construction COI uses the ACORD 25 format, a standardized template created by the Association for Cooperative Operations Research and Development.1ACORD. ACORD Forms FAQ The form packs a lot into one page: the insurance company names, policy numbers, effective and expiration dates, coverage types, and dollar limits for each policy the contractor carries. The top identifies the Producer (the broker who issued the certificate) and the Insured (the contractor). At the bottom, the Certificate Holder section names whoever requested the document.
The liability limits appear in two columns: per-occurrence and general aggregate. Per-occurrence is the most the insurer will pay for any single incident. Aggregate is the total available for all claims during the policy term. Standard construction COIs commonly show $1,000,000 per occurrence and $2,000,000 aggregate for general liability, though large commercial or government projects often require $2,000,000 to $5,000,000 in total coverage.
The Description of Operations Box
Near the bottom of the form, a free-text field labeled “Description of Operations / Locations / Vehicles” is easy to overlook. This is where the broker notes project-specific details: the job address, the contract number, and any special language the contract requires. Additional insured status and waiver of subrogation language often appear here. A generic COI that doesn’t reference your project may not trigger the endorsements you’re counting on, so if your contract calls for specific wording in this box, check that it’s actually there.
What a COI Does Not Guarantee
Printed in bold at the top of every ACORD 25 is this disclaimer: “This certificate is issued as a matter of information only and confers no rights upon the certificate holder. This certificate does not affirmatively or negatively amend, extend or alter the coverage afforded by the policies below.”1ACORD. ACORD Forms FAQ In plain terms, receiving a COI does not mean you have coverage. It means someone told you coverage existed on the date the certificate was printed.
A contractor’s policy can be cancelled the day after a COI is issued, and the certificate holder may hear nothing about it unless the right endorsements are in place. The form also warns that “limits shown may have been reduced by paid claims,” meaning the dollar amounts you see might already be partially consumed by earlier incidents. Treat the COI as a starting point for verification, not the finish line.
Policies You Should See Listed
A construction COI usually lists several policies, each with its own line and limit column. The ones that matter most:
Commercial General Liability (CGL) pays for bodily injury and property damage from the contractor’s work: a passerby hit by falling debris, water damage to an adjacent building from excavation, that sort of thing. Most contracts require at least $1,000,000 per occurrence. Standard CGL policies contain a total pollution exclusion, so fuel spills, concrete washout, and solvent fumes fall outside CGL entirely and need a separate Contractors Pollution Liability line.
Workers’ Compensation and Employers’ Liability covers medical costs, lost wages, and rehabilitation for employees injured on the job. State law, not federal law, mandates this for most private employers; the U.S. Department of Labor’s Office of Workers’ Compensation Programs handles claims only for federal employees.2U.S. Department of Labor. Workers’ Compensation On the COI, this section typically shows “statutory” limits. If a subcontractor lacks workers’ comp and one of their employees gets hurt on your project, the general contractor’s own policy may end up paying, which is exactly the scenario COI requirements are meant to prevent.
Automobile Liability covers vehicles used for business on the project. The COI distinguishes owned, hired (rented), and non-owned (an employee’s personal car) vehicles. Gaps show up most often with subcontractors using personal vehicles whose policies don’t cover commercial use.
Umbrella or Excess Liability sits on top of the primary CGL, auto, and employers’ liability policies and pays once their limits are exhausted. Construction COIs often show $5,000,000 or more here. Umbrella doesn’t create new coverage types; it extends the dollar limits of what’s already in place.
Professional Liability (also called errors and omissions) covers design errors, which standard CGL policies exclude. On any design-build project, this line should appear. Its absence is a serious red flag.
Builder’s Risk covers the structure itself during construction, including materials and equipment on site, against fire, storms, theft, and vandalism. It’s project-specific and shows on the COI only for the duration of the build.
Certificate Holder vs. Additional Insured
This is the single most misunderstood concept in construction insurance, and getting it wrong can leave you without coverage when you need it most.
A certificate holder simply receives a copy of the COI as proof the contractor has insurance. That’s it. A certificate holder has no coverage under the contractor’s policy and cannot file a claim against it.
An additional insured is actually added to the contractor’s policy through a separate endorsement. If a lawsuit names both the contractor and the project owner after a jobsite accident, an additional insured can trigger the contractor’s insurance to help defend and pay the claim. The most common endorsement form for this in construction is the CG 20 10, which extends coverage for liability arising from the contractor’s ongoing operations. Some policies use a blanket additional insured endorsement that automatically covers anyone required by a written contract.
On the ACORD 25, you may see an “Additional Insured” checkbox in the coverage section. The checkbox alone doesn’t create the coverage. The underlying policy must actually have the endorsement attached. The form itself warns that “a statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).” If your contract requires additional insured status, ask for a copy of the endorsement, not just a certificate with the box checked.
Endorsements That Matter
Waiver of Subrogation
After an insurer pays a claim, it normally has the right to pursue any third party that contributed to the loss and recover what it paid. That’s subrogation. In construction, this can get ugly fast: a subcontractor’s insurer pays a claim, then sues the general contractor or owner to recoup the money. A waiver of subrogation endorsement blocks this, keeping the claim contained rather than ricocheting through the project’s chain of contracts. Most well-drafted construction contracts require it from every party.
Notice of Cancellation
A COI is a snapshot, not a live feed. If the contractor’s policy is cancelled after the certificate is issued, you need to know before an uninsured incident occurs. A notice of cancellation endorsement requires the insurer to send written notice to the certificate holder a set number of days before cancellation takes effect, typically 30 days for most cancellations and 10 days for nonpayment. Without this endorsement, you have no contractual right to advance notice, because the ACORD form’s boilerplate doesn’t create one.
How to Verify a COI and Spot a Fake
Fraudulent certificates are increasingly common, partly because editing software makes them easy to fabricate. A forged COI exposes the whole project: if the uninsured contractor causes injury or property damage, the general contractor’s own insurance may end up paying.
Warning signs when reviewing a certificate:
- Misspelled insurer names, inconsistent fonts, or misaligned columns suggest the form was manually edited rather than generated by legitimate insurance software.
- An unverifiable insurer. Look up the insurance company through the NAIC (National Association of Insurance Commissioners) database or your state’s Department of Insurance site. If the company doesn’t exist or isn’t licensed in the relevant state, the certificate is worthless.
- Policy numbers that don’t match the carrier’s known format.
- Mismatched dates, such as an effective date that predates the insurer’s existence or an expiration that doesn’t match a standard annual policy term.
The most reliable step is calling the producer’s office using a phone number you find independently, not the one printed on the certificate. Look up the agent through your state Department of Insurance licensing database, confirm the license is active, and ask them to verify they issued the certificate for that contractor on the date shown. If anything feels off, contact the insurance carrier directly.
How to Get a COI
If you’re the contractor producing the certificate, your insurance broker or agent issues it on your behalf. You don’t request it from the insurance company directly. A standard COI with no changes to the underlying policy typically takes a few hours. If the requesting party needs endorsements added, such as additional insured status or a waiver of subrogation, allow a day or two for the broker to process the change with the carrier.
The certificate itself is free. You’re not paying for a new document; you’re documenting coverage you already carry. Adding endorsements may carry a small additional premium depending on your policy, but for standard construction contracts, most carriers include them at no extra cost. Keeping your broker informed about upcoming projects is the fastest path, because endorsements can then be in place before the request arrives.