When running a Commercial Insurance business, maintaining strong client relationships and complying with contractual requirements are vital to your success. One key document often required by clients is a Certificate of Insurance (COI). Understanding its purpose and ensuring your COI meets industry standards can set you apart as a reliable and professional service provider. 
What is a Certificate of Insurance?
A Certificate of Insurance (COI) is not a contractual document but is a standardize document that summarizes your company’s beginning insurance coverage and its limits. It acts as proof that your business carries insurance policies to protect against risks. For Commercial Insurance businesses, COIs commonly include details of general liability, workers’ compensation, auto liability, and, if applicable, professional liability insurance. These documents are often requested by clients or regulatory bodies to confirm that your Company is insured.
Why COIs Matter for Commercial Companies
Commercial Companies face unique risks, including general liability, property damage, chemical spills, and personal injury claims. Clients, especially in residential or commercial settings, want assurance that accidental damage or injury caused during services is covered. A COI is helpful to demonstrate your commitment to professionalism and risk management. Moreover, having a clear and accurate COI can prevent disputes and delays in project start dates, ensuring a smoother workflow. Clients often require proof of insurance before contracting services to protect their interests. A well-prepared COI demonstrates that you prioritize compliance and operational integrity.
Key Elements of a Comprehensive COI
A COI should be precise and include all the necessary details, such as:
- Policyholder’s name and business address.
- Type of coverage (e.g., general liability, workers’ compensation, auto liability).
- Policy limits and effective dates.
- Certificate holder information (client requesting the COI).
- Additional insured endorsements, if required.
Ensuring your COI is up-to-date and error-free can avoid client dissatisfaction and potential liability issues.
How COIs Strengthen Client Relationships
Providing a COI promptly builds trust and positions your business as a professional and reliable partner, clients appreciate transparency.
Best Practices for Managing COIs
- Work with Bone, Robertson, & McBride, Inc.: For over 52 years we have been specializing in your industry. We suggest that you contact us before engaging in individual Contracts to make sure you already have enough coverage to meet your potential client’s needs.
- Review Contracts Carefully: Understand client requirements before signing a Contract and requesting a certificate of insurance minimizes misunderstandings. But do note, adding parties as Additional Insureds, etc. must be required and agreed to in writing with your customers. Your Contract as an essential element in Risk Management. If requested, we can assist you in reviewing the Insurance requirements in your Contracts before signing. Please note we are not attorneys and are not providing legal services but from a Risk Management point of view you may find this to be prudent.
- Keep COIs Updated: Ensure policy renewals and amendments are reflected promptly on your COI.
Conclusion
Although Certificates of Insurance are not of a contractual nature but merely a notice to parties; they are vital tools for building trust, securing contracts, and protecting your business. If you are a current client of Bone, Robertson, & McBride and have not yet requested to be set up on our BRM 24/7 platform where you can issue your own certificates and reprint existing certificates please inquire and we will get you set up as soon as possible. Please contact Aimee Padden at Aimee@brmins.com or 925-674-1000 ext. 107 for assistance.