Certificates of Insurance: What They Do and What They Do Not Do

Certificates of insurance are a routine part of construction, contracting, property management, vendor relationships, and many other business transactions.

They are also one of the most commonly misunderstood insurance documents.

A certificate generally provides evidence that certain insurance policies were in force as of the date it was issued. It summarizes information such as carriers, policy numbers, policy periods, types of coverage, and limits.

A certificate is not the insurance policy itself.

That distinction matters because a certificate generally cannot create coverage, change policy terms, or override exclusions simply because a requested phrase appears on the form.

Contractors are often asked to provide evidence of general liability, commercial auto, umbrella or excess liability, and workers compensation coverage.

Contracts may also require additional insured status, primary and noncontributory wording, waiver of subrogation, completed operations coverage, specific cancellation provisions, or other requirements.

Those requirements generally need to be supported by the actual policy and applicable endorsements. The certificate should reflect coverage that exists rather than attempting to create coverage on its own.

This is why the contract should be reviewed before work begins.

A subcontractor may sign an agreement promising insurance terms that its current policy cannot provide. Discovering that problem after a certificate request—or after a claim—is much more difficult than addressing it during contract review.

Hiring contractors and project owners should also avoid relying solely on the appearance of a certificate. They may need to verify required endorsements, policy limits, carrier information, and continuing compliance with contractual requirements.

Certificates can also become outdated. A policy may later cancel, nonrenew, or change, depending on the circumstances and applicable notice requirements.

Businesses that frequently issue or collect certificates should have a consistent process for contract review, certificate tracking, subcontractor requirements, and renewal monitoring.

The key principle is simple: the policy and its endorsements determine coverage. The certificate is evidence of that coverage, not a substitute for it.