(A Practical Guide to Prevent Risk, Delays, and Compliance Gaps)

If you’re a contractor or property manager, collecting a Certificate of Insurance (COI) isn’t just paperwork — it’s your first layer of risk protection.

Too often, teams collect a COI, glance at the expiration date, and file it away.

That’s not enough.

Below is a practical, field-tested COI checklist you can use before approving any vendor or subcontractor.

✅ What Is a COI?

Most COIs are issued on the ACORD 25 Certificate of Liability Insurance form.

It summarizes:

• Coverage types
• Policy numbers
• Effective and expiration dates
• Limits
• Named insured
• Certificate holder

⚠ Important: A COI is evidence of coverage, not the policy itself.

📋 COI Checklist for Contractors & Property Managers

Use this checklist before marking a vendor “compliant.”

1️⃣ Named Insured Verification

✔ Is the legal business name correct?
✔ Does it match your contract/vendor agreement?
✔ Is it an LLC, Inc., or DBA as expected?

Why this matters:
If the name doesn’t match the contract, coverage disputes can arise.

2️⃣ Policy Effective & Expiration Dates

✔ Are all policies currently active?
✔ Do the dates cover the full contract term?
✔ Are any policies expiring within 30–60 days?

Best Practice:
Start renewal requests 45 days before expiration to prevent gaps.

3️⃣ Required Coverages Present

Typical required coverages include:

• Commercial General Liability (CGL)
• Workers Compensation
• Commercial Auto Liability
• Umbrella / Excess Liability
• Professional Liability (if applicable)
• Cyber Liability (if applicable)

✔ Confirm each required coverage appears on the COI
✔ Confirm “occurrence” vs “claims-made” if relevant

4️⃣ Limits Meet Requirements

This is where many teams miss critical details.

Common minimum limits:

Coverage	Typical Minimum
General Liability	$1M per occurrence / $2M aggregate
Workers Comp	Statutory
Employers Liability	$500K–$1M
Auto Liability	$1M combined single limit
Umbrella	$1M–$5M

✔ Do per occurrence limits match your template?
✔ Does aggregate meet requirement?
✔ Does umbrella properly sit over primary policies?

If limits are short, document it clearly before approval.

5️⃣ Required Endorsements

Most contracts require:

• Additional Insured
• Waiver of Subrogation
• Primary & Non-Contributory
• Completed Operations (if construction-related)

✔ Are boxes checked on the COI?
✔ If required, request endorsement pages — not just certificate wording
✔ Confirm Additional Insured is issued on a proper endorsement form (CG 20 10, CG 20 37, etc.)

Important:
COI wording alone does not guarantee endorsement issuance.

6️⃣ Certificate Holder Information

✔ Is your company listed correctly?
✔ Is address correct?
✔ Are special contract requirements included in the description box?

If the certificate holder is wrong, request re-issuance immediately.

7️⃣ Description of Operations Section

This section often includes:

• Project name
• Property address
• Additional insured wording
• Contract references

✔ Does it reference your specific project?
✔ Is project-specific coverage required?
✔ Are multiple locations listed if needed?

8️⃣ Carrier Financial Rating

✔ Is the insurance carrier rated A- or better (if required)?
✔ Is it a recognized carrier?

For large property portfolios, carrier stability matters.

9️⃣ Watch for Red Flags

🚩 Handwritten modifications
🚩 Expiration dates very close to today
🚩 Missing policy numbers
🚩 Coverage marked “Claims Made” without retro date
🚩 COI issued by vendor instead of broker
🚩 Policy effective date after work has already started

These require clarification before approval.

🏗 Special Notes for Contractors

If you are a general contractor:

• Require COIs from every subcontractor
• Track policies individually
• Tie compliance to job site access
• Re-verify coverage before final payment release

Many construction claims arise from uninsured subcontractors.

🏢 Special Notes for Property Managers

If you manage:

• Multi-family properties
• Commercial buildings
• Retail centers
• HOAs

Ensure:

• Vendors working on-site carry Workers Comp
• Landscaping, roofing, HVAC, and electricians carry proper GL + Auto
• Snow removal vendors have adequate umbrella coverage
• Tenant improvement contractors meet property insurance standards

📊 Pro Tip: Don’t Just Collect — Track

Collecting a COI is step one.

Tracking expiration, renewal, and compliance status is step two.

To reduce risk:

• Store policies individually
• Automate renewal reminders
• Document exceptions
• Keep an audit trail of approvals

Final Thoughts

A strong COI checklist protects:

• Your business
• Your property
• Your investors
• Your clients

COIs should not be treated as a checkbox exercise.

They are a risk management control system.

If you use this checklist consistently, you’ll:

• Reduce renewal chasing
• Prevent coverage gaps
• Avoid uninsured claims
• Strengthen contract enforcement

And most importantly — you’ll sleep better knowing your vendors are properly insured.