---
title: "Certificate of Insurance for a Small Business: What a COI Is, How to Get One, and What It Does Not Do"
description: "A certificate of insurance sums up your business coverage for a client or landlord. See how to request a COI, what it shows and what needs an endorsement."
url: "https://riskado.com/certificate-of-insurance-for-small-business/"
lang: "en"
published: "2026-10-13"
modified: "2026-10-13"
tags: ["certificate-of-insurance","small-business-insurance","additional-insured","general-liability"]
image: "https://riskado.com/og/default.jpg"
alternates:
  es: "https://riskado.com/es/certificado-de-seguro-para-negocio.md"
---

# Certificate of Insurance for a Small Business: What a COI Is, How to Get One, and What It Does Not Do

Riskado

Oct 13, 2026 · 13 min read

![A clipboard with blank paperwork, a pen and a hard hat on the tailgate of a work truck at a job site](https://riskado.com/blog/certificate-of-insurance-for-small-business/featured.jpg)

A [certificate of insurance](https://riskado.com/insurance-terms/certificate-of-insurance/), usually called a COI, is a document your [insurer](https://riskado.com/insurance-terms/insurer/) or [insurance agent](https://riskado.com/insurance-terms/agent/) issues to summarize the [coverage](https://riskado.com/insurance-terms/coverage/) your business has in force on the day it is issued. You get one by asking the agent, broker or insurer that handles your policy, and you give them the exact name, address and requirements of whoever asked for it. The certificate shows your business name, your insurers, policy numbers, policy dates, coverage types and limits. It is proof of coverage, not the policy itself, so it cannot add coverage or make the requester an insured. If a client, landlord or general contractor wants additional insured status or a [waiver of subrogation](https://riskado.com/insurance-terms/subrogation/), your policy or an [endorsement](https://riskado.com/insurance-terms/endorsement/) has to provide it first.

### Key takeaways

- **What it is**A document from your insurer or agent that summarizes the coverage your business has in force on the day it is issued.
- **How to get one**Ask the agent, broker or insurer that handles your policy, and give them the requester's exact name, address and requirements.
- **What it shows**Your business name, insurers, policy numbers, policy dates, coverage types and limits.
- **What it cannot do**Add coverage or make the requester an insured; additional insured status or a waiver of subrogation has to come from the policy or an endorsement.

## What should you do when someone asks for a certificate?

Start by getting the request in writing. A lease, a vendor application, a subcontract or a venue agreement usually spells out what the other party wants to see: the coverage types, the minimum limits, the exact name to show as certificate holder, and sometimes special wording such as additional insured status or a waiver of subrogation. Send that whole document to your agent or insurer rather than a summary of it, because the person issuing the certificate needs to compare the request against what your policy actually says.

From there, the issuing agent or insurer prepares the certificate and sends it to you or straight to the requester. If something in the request goes beyond your current policy, such as a higher limit or an endorsement you do not have, that is the point to find out. A certificate only reports what the policy already provides, so a gap gets fixed by changing the policy, not by changing the certificate.

## What a certificate of insurance is

A certificate of insurance is evidence of property or casualty coverage prepared by an insurer or insurance producer. [Illinois Insurance Code § 155.45 (opens in a new tab)](https://www.ilga.gov/legislation/ilcs/fulltext.asp?DocName=021500050K155.45) defines it that way and expressly excludes a policy, a binder, a policy endorsement and a motor vehicle insurance card. [Texas Insurance Code Chapter 1811 (opens in a new tab)](https://statutes.capitol.texas.gov/Docs/IN/htm/IN.1811.htm) describes it as a statement or summary of coverage issued to a third person, and its definition includes electronic records.

Those distinctions matter in practice. The policy is the contract with the insurer. A binder is temporary evidence that coverage is in place while the policy is issued. An endorsement changes the policy itself and becomes part of it, according to the [NAIC's explanation of endorsements (opens in a new tab)](https://content.naic.org/article/consumer-insight-do-you-know-how-use-insurance-rider-or-endorsement). The certificate sits outside all three and reports on them.

The most common form for liability coverage is the ACORD 25, the Certificate of Liability Insurance. Its own heading says it is issued as a matter of information only, confers no rights on the certificate holder, and does not amend, extend or alter the coverage of the listed policies ([ACORD 25 form, hosted by the Texas Department of Insurance (opens in a new tab)](https://tdi.texas.gov/certificates/documentcr/s21357a.pdf)).

## What a COI shows, field by field

The ACORD 25 is a one-page form, and requesters commonly check the same handful of boxes on it. The producer, meaning the agent or broker, completes it and an authorized representative signs it.

The main sections of an ACORD 25 certificate

Hover or tap a row to highlight it.

| Section | What it shows | What the requester usually checks |
| --- | --- | --- |
| Date and producer | When the certificate was issued and the agency that issued it | Whether it is current and who to call to confirm it |
| Insured | Your business name and address | That the legal name, and any DBA, match the contract |
| Insurers | The companies providing each coverage, by letter | That each policy has an insurer listed |
| Coverage lines | General liability, automobile liability, umbrella or excess liability, workers compensation and employers liability | That every required type of coverage appears |
| Policy numbers and dates | Each policy's number, effective date and expiration date | That coverage runs through the job or lease period |
| Limits | Each occurrence, general aggregate, products-completed operations, personal and advertising injury, auto, umbrella and workers compensation limits | That each limit meets the contract minimum |
| Description of operations | Notes on the work, location or project, plus references to supporting endorsements | That any additional insured or waiver wording is backed by an endorsement |
| Certificate holder | The person or organization receiving the certificate | That the name and address are exactly right |
| Cancellation | The form's cancellation statement | That notice terms come from the policy, not the certificate |

A certificate of liability insurance looks like a dense grid, but the logic is simple: one row per policy, with its insurer, number, dates and limits. If a requester rejects a certificate, look first at the name against the contract, each limit against the minimum, the expiration dates against the job, and any requested wording against the policy.

## Certificate holder versus additional insured

The certificate holder is simply the party the certificate is issued to. Being named in that box does not make the holder an insured under your policy. Additional insured status has to come from policy language or an endorsement, and the ACORD 25 itself says that if the certificate holder is an additional insured, the policy must have additional insured provisions or be endorsed.

Texas draws the line sharply. Under the [Texas Department of Insurance certificate FAQ (opens in a new tab)](https://www.tdi.texas.gov/certificates/faq.html), the additional insured box should be checked only when the policy includes an endorsement naming the certificate holder, and a certificate cannot name a holder as an additional insured when the policy has only a blanket additional insured endorsement, though it may state that the policy contains one. The same rule applies to a blanket waiver of subrogation.

If your contract asks for additional insured status, our guide to [additional insured endorsements](https://riskado.com/additional-insured/) covers what that status gives the other party and how to request it.

![A clipboard with a blank form and a pen resting on a contractor's workbench](https://riskado.com/blog/certificate-of-insurance-for-small-business/form-on-workbench.jpg)

The certificate holder box and the additional insured endorsement are two separate things.

## How to request a certificate from your agent

A complete request saves a round of back-and-forth. Give the agent or insurer:

- Your business's exact legal name, and its DBA or assumed name if the contract uses one.
- The certificate holder's exact legal name and mailing address.
- The contract, lease, venue or client requirements, ideally the insurance section itself.
- The coverage types and minimum limits being asked for.
- The project, location or description of operations the requester wants shown.
- Any additional insured, waiver of subrogation or primary wording being requested.
- The dates the coverage needs to run.
- Where and how to deliver the certificate.

Many certificates go out electronically, and Texas law expressly counts an electronic record as a certificate. How fast a certificate arrives, and whether there is any charge, depends on the agent or insurer, so ask the issuing office about both when you send the request. That question is worth asking early if work cannot start until the requester has the document in hand.

### Before you send a certificate request

- **Requirements**Get the requester's insurance requirements in writing and send the full document to your agent.
- **Names**Confirm your legal business name, any DBA, and the certificate holder's exact name and address.
- **Endorsements**Ask whether additional insured or waiver of subrogation wording needs an endorsement.
- **Dates and limits**Check that policy dates, limits and the description of operations match the contract.
- **Fee and timing**Ask whether there is a charge and when the certificate can go out.
- **Records**Keep the certificate and any endorsements with the contract.

## Does an LLC legally need business insurance?

An LLC does not need a certificate simply because it is an LLC. A certificate gets produced when someone, such as a client, landlord, venue, general contractor, licensing office or lender, asks for evidence of coverage. Whether the business must carry insurance at all is a separate question, and the answer depends on state law, your employees, your vehicles, your licenses and your contracts.

Workers compensation shows how much the rules differ by state. Massachusetts requires all employers to carry it for their employees, including small and family businesses, according to the [Massachusetts Department of Industrial Accidents (opens in a new tab)](https://www.mass.gov/info-details/who-is-covered-by-workers-compensation-insurance). North Carolina generally requires it once an employer has three or more employees, with special rules for some industries, according to the [North Carolina Industrial Commission (opens in a new tab)](https://www.ic.nc.gov/faqs). In Connecticut, a single-member LLC is not required to elect to accept the Workers' Compensation Act, per [Workers' Compensation Commission Memorandum No. 2019-02 (opens in a new tab)](https://portal.ct.gov/wcc/workers-compensation-news/commission-memorandums/2019-memos/memorandum-no-2019-02). Your own state's workers compensation agency or [insurance department (opens in a new tab)](https://content.naic.org/state-insurance-departments) has the rule where you operate, and our guide on [workers comp for one employee](https://riskado.com/do-i-need-workers-comp-for-one-employee/) goes further.

Workers compensation rules in three states

Hover or tap a row to highlight it.

| State | Who must carry it | Source |
| --- | --- | --- |
| Massachusetts | All employers, including small and family businesses | [Department of Industrial Accidents (opens in a new tab)](https://www.mass.gov/info-details/who-is-covered-by-workers-compensation-insurance) |
| North Carolina | Generally employers with three or more employees, with special rules for some industries | [Industrial Commission (opens in a new tab)](https://www.ic.nc.gov/faqs) |
| Connecticut | A single-member LLC is not required to elect to accept the Workers' Compensation Act | [Memorandum No. 2019-02 (opens in a new tab)](https://portal.ct.gov/wcc/workers-compensation-news/commission-memorandums/2019-memos/memorandum-no-2019-02) |

Going without general liability insurance is not a universal violation for every LLC. A business can still break a specific rule by operating without required coverage, such as a licensing condition, a vehicle insurance law, a workers compensation law or the terms of a signed contract. When a certificate is requested, the requirement usually comes from a contract, and that contract decides what you must show.

![A small storefront workshop at dusk with its interior lights on and an empty sidewalk out front](https://riskado.com/blog/certificate-of-insurance-for-small-business/state-rules.jpg)

Whether a business must carry a coverage depends on state law, employees, vehicles, licenses and contracts.

## Why landlords, clients, venues and contractors ask for one

A requester asks for a certificate to document that your business carries insurance relevant to the work, the lease or the event. The request is usually contractual or administrative. A general contractor wants to know a subcontractor carries liability and workers compensation before the crew arrives. A landlord wants proof of liability coverage before handing over keys. A venue wants evidence of event liability coverage before a vendor sets up.

The certificate alone does not prove that every insurance term of the contract is met. Illinois law says a certificate may not warrant that the policy complies with the insurance or indemnification requirements of another contract, and Texas bars certificates from referring to legal or insurance requirements in a contract other than the policy itself, beyond a contract or job number for identification. That is why a careful requester will also ask for the endorsements behind the certificate.

## Common policies that appear on a certificate

The certificate reports whichever policies you carry. On a liability certificate, these are the usual ones, described by the [NAIC's small business insurance guide (opens in a new tab)](https://content.naic.org/consumer/small-business.htm):

- **General liability:** covers bodily injury, damage to other people's property, personal injury and false or misleading advertising claims.
- **Commercial auto:** covers business vehicles, often with higher liability limits, and may extend to rented and employee-owned vehicles used for company business.
- **Workers compensation and employers liability:** the state-regulated coverage for covered work injuries and illnesses, with requirements that differ by state.
- **Umbrella or excess liability:** a higher layer of liability limits above the primary policies, subject to its own terms. Our comparison of [umbrella and excess liability](https://riskado.com/umbrella-vs-excess-liability-insurance/) explains how the two layers differ.
- **Business owners policy:** a package that typically combines property, business interruption and liability coverage, and typically does not include commercial auto or workers compensation, according to the NAIC.

Some requesters set their own minimum limits. The Texas State Fire Marshal, for example, requires certain licensed companies to show at least $100,000 combined single limit per occurrence and $300,000 total for the policy year, and at least $500,000 per occurrence for a public fireworks display permit ([Texas Department of Insurance (opens in a new tab)](https://www.tdi.texas.gov/fire/certificate-liability-insurance.html)). Those are requirements for specific Texas activities, and your own contract or license sets the figures that apply to you. For a broader look at which coverages fit which business, see [what insurance a small business needs](https://riskado.com/what-insurance-does-a-small-business-need/).

## Can you get a certificate for a one-day event?

Short-term event insurance exists for single-day and short-duration events. Event liability insurance can address bodily injury or property damage arising from the event, and some venues require a minimum amount of it and ask to be added as an additional insured, according to the [NAIC's consumer guide to event insurance (opens in a new tab)](https://content.naic.org/article/consumer-insight-event-insurance). The NAIC also says event coverage may take several days to go into effect, so plan the request early.

If you are a vendor with an existing business policy, ask your agent first whether that policy already applies to the event and whether the venue will accept it. If the venue wants a separate event policy or an endorsement naming it, the agent can tell you what that involves and how long it takes.

![Folding tables and a canopy tent set up on an empty lawn before an outdoor event](https://riskado.com/blog/certificate-of-insurance-for-small-business/event-setup.jpg)

Event coverage can take several days to start, so plan the request early.

## Waivers, cancellation notice and other special wording

Requesters sometimes ask for wording beyond the basic coverage summary. Three requests are common:

- **Additional insured status:** the policy or an endorsement must provide it.
- **Waiver of subrogation:** the policy or an endorsement must provide it; a statement on the certificate does not replace the endorsement.
- **Cancellation notice:** a certificate cannot create a notice right. Under the Texas FAQ, a person has a legal right to notice of cancellation, nonrenewal or material change only when named in the policy or an endorsement and when the policy, an endorsement or Texas law requires the notice.

When a request includes any of these, ask your agent whether your policy already supports it, and if it does not, what endorsement would and what it costs. Then send the requester the endorsement along with the certificate.

## How a requester can verify a certificate

A certificate is easy to check. The requester, or you on their behalf, can:

1.  Call the producer listed on the certificate.
2.  Contact the insurer using contact details found independently, not only those printed on the form.
3.  Confirm the insured name, policy number, policy dates, coverage lines and limits.
4.  Ask whether each policy is currently in force.
5.  Request a copy of any additional insured or waiver of subrogation endorsement.
6.  Compare everything with the contract's insurance section.

Texas allows an agent or insurer to provide a copy of the policy or endorsements, according to the TDI FAQ. Checking matters because altered or misleading certificates are a regulated problem. Illinois treats a certificate that contains false or misleading information, or that alters, amends or extends coverage, as prohibited, and Texas likewise bars false or misleading certificate information and certificates that create rights the policy does not give. Texas violations can bring civil penalties of up to $1,000 for each infraction, along with cease-and-desist orders and other remedies, per the TDI FAQ. These certificate laws are set state by state; an NAIC model law is not binding until a state adopts it, according to the [NAIC (opens in a new tab)](https://content.naic.org/model-laws/how-model-laws-work).

![A desk phone, an open folder and a closed laptop on a tidy office desk](https://riskado.com/blog/certificate-of-insurance-for-small-business/verify-call.jpg)

A call to the listed producer or insurer confirms whether the policy is in force.

## Questions to ask your agent or insurer

Bring the requester's document and these questions to the agency that handles your policy:

- Does my policy already meet every coverage type and limit in this contract?
- Does the request for additional insured or waiver of subrogation wording need an endorsement, and is there a charge?
- Does my general liability policy cover the operations described in the contract?
- Do my policy dates cover the whole job, lease or event?
- When can the certificate be issued, and is there a fee?
- Can you send the certificate and any endorsements directly to the requester?
- If the requester rejects the certificate, can you tell me exactly what is missing?

If you are looking for an agency to handle these requests, the [Riskado insurance agency directory](https://riskado.com/agencies/) lists agencies across the US, and you can confirm an agency's license through your [state insurance department (opens in a new tab)](https://content.naic.org/state-insurance-departments).

**Quiz: Check what you know about certificates of insurance**

1. Does a certificate of insurance add coverage to your policy?
   - Yes, it extends the policy to the certificate holder
   - No, it summarizes coverage and does not amend, extend or alter it **(correct answer)**
   - Only if the requester signs it
2. Does being the certificate holder make a party an additional insured?
   - Yes, automatically
   - No, additional insured status must come from the policy or an endorsement **(correct answer)**
   - Only for one-day events
3. Can a certificate promise cancellation notice the policy does not provide?
   - Yes, if the requester asks for it
   - No, notice rights come from the policy, an endorsement or the law **(correct answer)**
   - Only for venues
4. Does every LLC face the same insurance requirement?
   - Yes, every LLC must carry general liability by law
   - No, requirements depend on state law, employees, vehicles, licenses and contracts **(correct answer)**
   - Only LLCs with one member
5. According to the NAIC, how long can event insurance take to go into effect?
   - It always starts the same day
   - It may take several days **(correct answer)**
   - At least a month

## Common questions

### How much does a certificate of insurance cost?

Fees are set by the issuing agent or insurer, and there is no national fee rule. Ask about any charge when you send the request, along with how quickly the certificate can go out.

### Who fills out a certificate of insurance?

The producer or insurer that handles your policy completes and signs it. You supply the requester's name, address and requirements, and the producer reports what your policy shows.

### Can I get a certificate before my policy starts?

The certificate reports coverage in force on the day it is issued, with each policy's effective and expiration dates. If coverage has not started, ask your agent whether a binder or another document fits the requester's needs, and when the policy itself takes effect.

### What happens if my policy expires before the work ends?

The certificate shows each policy's expiration date, and many requesters ask for an updated certificate after renewal. Tell your agent who holds certificates for ongoing jobs so updated ones go out when the policy renews.

### Is a certificate of insurance the same as a policy?

No. The policy is the contract, and the certificate summarizes it as of the date issued. Endorsements change the policy, while the certificate only reports what the policy and its endorsements already say.

## Your next step

Ask the requester for its insurance requirements in writing, then send the full document to your agent or insurer with your exact business name and the certificate holder's details. If the request goes beyond your current coverage, ask what change or endorsement would meet it before you sign the contract.

**Sources:** [ACORD 25 form (opens in a new tab)](https://tdi.texas.gov/certificates/documentcr/s21357a.pdf); [Texas Department of Insurance certificate FAQ (opens in a new tab)](https://www.tdi.texas.gov/certificates/faq.html); [Texas Department of Insurance certificates of insurance (opens in a new tab)](https://www.tdi.texas.gov/certificates/index.html); [Texas Insurance Code Chapter 1811 (opens in a new tab)](https://statutes.capitol.texas.gov/Docs/IN/htm/IN.1811.htm); [Illinois Insurance Code § 155.45 (opens in a new tab)](https://www.ilga.gov/legislation/ilcs/fulltext.asp?DocName=021500050K155.45); [NAIC event insurance (opens in a new tab)](https://content.naic.org/article/consumer-insight-event-insurance); [NAIC small business insurance (opens in a new tab)](https://content.naic.org/consumer/small-business.htm); [NAIC endorsements (opens in a new tab)](https://content.naic.org/article/consumer-insight-do-you-know-how-use-insurance-rider-or-endorsement); [NAIC model laws (opens in a new tab)](https://content.naic.org/model-laws/how-model-laws-work); [Massachusetts Department of Industrial Accidents (opens in a new tab)](https://www.mass.gov/info-details/who-is-covered-by-workers-compensation-insurance); [North Carolina Industrial Commission (opens in a new tab)](https://www.ic.nc.gov/faqs); [Connecticut Workers' Compensation Commission Memorandum No. 2019-02 (opens in a new tab)](https://portal.ct.gov/wcc/workers-compensation-news/commission-memorandums/2019-memos/memorandum-no-2019-02); [Texas State Fire Marshal certificate requirements (opens in a new tab)](https://www.tdi.texas.gov/fire/certificate-liability-insurance.html).

### Terms used in this guide

Tap a term to see what it means.

**Certificate of insurance (COI).** A document from an insurer or insurance producer that summarizes property or casualty coverage in force on the day it is issued.

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- [Employment Practices Liability Insurance (EPLI): What It Covers, What It Does Not, and When a Small Employer Looks at It](https://riskado.com/employment-practices-liability-insurance-for-small-business/): EPLI covers employee claims of discrimination, harassment and wrongful termination. See what it excludes, how claims-made timing works and what to do next.

- [Cyber Insurance for a Small Business: What It Covers, What It Costs, and What an Insurer Will Ask](https://riskado.com/cyber-insurance-for-small-business/): Cyber insurance can pay a small business's breach response costs and claims by others. See what it covers, what drives cost and what an insurer will ask about.

- [Connecticut Small Business Insurance: What Is Required, What Is Worth Having, and What It Costs](https://riskado.com/connecticut-small-business-insurance/): Connecticut requires workers' compensation for employees and insurance on commercial vehicles. See what else depends on leases, contracts and licenses.

- [Massachusetts Small Business Insurance: What the Law Requires and What Is Worth Asking About](https://riskado.com/massachusetts-small-business-insurance/): Massachusetts requires workers' compensation for every employee and auto insurance for every registered vehicle. See what leases, contracts and licenses add.

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