If your business works with outside vendors, you may eventually be asked to provide a Certificate of Insurance (COI) before you can begin providing products or services. For many companies in the United States, a COI is a routine part of the vendor onboarding process.

A customer may request one before signing a contract. A property owner may require it before allowing a vendor onto the premises. A corporation may need it before approving a supplier in its vendor management system.

For vendors, understanding the purpose of a Certificate of Insurance can make the process much easier. You need to know what information belongs on the certificate, what insurance coverage a customer may require, and the difference between being a certificate holder and an additional insured.

This guide explains everything vendors should know about COIs in the United States.

What Is a Certificate of Insurance for Vendors?

A Certificate of Insurance for vendors is a document that summarizes certain insurance coverage maintained by a vendor or supplier.

A COI may show:

• Vendor’s legal business name
• Insurance company
• Policy numbers
• Types of coverage
• Coverage limits
• Policy effective dates
• Policy expiration dates
• Certificate holder
• Description of operations

For example, imagine a restaurant hires an outside cleaning company. Before allowing the cleaning company’s employees to work inside the restaurant, the owner may request a COI showing that the cleaning company maintains commercial general liability insurance.

The certificate provides the restaurant with basic information about the vendor’s insurance without requiring the vendor to provide its entire insurance policy immediately.

However, a COI is not a substitute for the insurance policy. The underlying policy contains the actual terms, conditions, exclusions, definitions, and endorsements that determine coverage.

Why Do Businesses Ask Vendors for a COI?

Businesses often work with vendors who operate on their property, handle equipment, interact with customers, or perform services that could create potential liability.

Requiring insurance documentation can be part of a company’s vendor risk-management process.

A business might request a COI from a:

• Cleaning company
• IT service provider
• Caterer
• Construction company
• Electrician
• Plumber
• Security company
• Landscaping company
• Marketing agency
• Consultant
• Equipment repair company
• Delivery company
• Event vendor

The purpose is generally to verify that the vendor maintains the insurance required under the business relationship or contract.

Example

Suppose a shopping center hires a landscaping company.

The property manager may require the landscaping company to provide:

• Commercial general liability insurance
• Workers’ compensation coverage, where applicable
• Commercial auto liability coverage
• Specific minimum limits
• Certain endorsements

The landscaping company can contact its insurance agent or broker to request a COI that reflects its actual coverage.

What Information Appears on a Vendor COI?

A vendor Certificate of Insurance generally contains several important sections.

COI Information	Purpose
Named insured	Identifies the insured vendor
Insurance carrier	Identifies the insurer
Policy number	Identifies the applicable policy
Coverage type	Shows the type of insurance
Policy limits	Shows applicable stated limits
Effective date	Shows when the policy period begins
Expiration date	Shows when the policy period ends
Certificate holder	Identifies the party receiving the certificate
Description of operations	May identify services, projects, or locations

The information should accurately reflect the vendor’s insurance policy.

Vendors should never change policy information to make it satisfy a customer’s requirements.

Common Insurance Coverage Requested From Vendors

The insurance requirements vary depending on the vendor’s services and the customer’s contract.

Some of the most common coverage types include the following.

Commercial General Liability

Commercial general liability (CGL) is frequently requested from vendors.

For example, a customer could require a vendor that performs maintenance work at its facility to carry general liability insurance.

The actual coverage depends on the vendor’s policy terms.

Workers’ Compensation

Companies may require vendors with employees to maintain workers’ compensation insurance when applicable.

Workers’ compensation requirements vary among U.S. states and can depend on factors such as:

• Number of employees
• Type of work
• Industry
• Business structure
• State

A vendor should determine its obligations under the applicable state rules rather than relying solely on a customer’s COI requirements.

Commercial Auto Liability

Vendors that use vehicles as part of their operations may be required to carry commercial auto liability insurance.

This can apply to businesses such as:

• Delivery companies
• Contractors
• Equipment service providers
• Mobile technicians
• Transportation companies
• Landscaping businesses

The required limits may be specified in the vendor agreement.

Professional Liability

Professional liability insurance may be requested from vendors that provide professional services or advice.

Examples can include:

• Consultants
• Accountants
• Technology companies
• Architects
• Engineers
• Marketing professionals
• Business service providers

Whether this coverage is appropriate depends on the nature of the vendor’s services.

Umbrella or Excess Liability

Some larger companies require vendors to maintain additional liability limits through umbrella or excess insurance.

These requirements may be more common for vendors performing higher-risk operations or working on large commercial projects.

What Coverage Limits Do Vendors Need?

There is no universal insurance limit that applies to every U.S. vendor.

The requirements depend on the contract, industry, services, location, and risk involved.

A customer might request something such as:

Coverage	Example Requirement
General Liability – Each Occurrence	$1,000,000
General Aggregate	$2,000,000
Commercial Auto Liability	$1,000,000
Workers’ Compensation	Statutory, where applicable
Employer’s Liability	$500,000
Umbrella/Excess Liability	$2,000,000

These are examples only, not universal requirements.

A small marketing consultant may have very different insurance requirements from a construction vendor working on a major commercial property.

Before purchasing or changing insurance, vendors should review the actual contract requirements with a licensed insurance professional.

Certificate Holder vs. Additional Insured

One of the biggest sources of confusion involving vendor COIs is the difference between a certificate holder and an additional insured.

Certificate Holder

The certificate holder is generally the person or organization receiving the Certificate of Insurance.

For example, a corporation may hire a vendor and ask to be listed as the certificate holder.

This provides the corporation with documentation about the vendor’s insurance.

Additional Insured

An additional insured may receive certain rights or coverage under an insurance policy when properly added in accordance with the applicable policy terms or endorsement.

Simply listing a company as the certificate holder does not automatically make it an additional insured.

Certificate Holder	Additional Insured
Receives the certificate	May receive certain policy protection
Receives evidence of insurance	May require an applicable endorsement
Does not automatically become insured	Rights depend on policy provisions.
Common vendor requirement	Often specified in contracts.

If a customer requires additional insured status, the vendor should notify its insurance agent or broker.

How Vendors Get a Certificate of Insurance

Getting a COI is usually simple if the vendor already has the required insurance.

Step 1: Review the Vendor Agreement

Before requesting a certificate, read the insurance section of the contract.

Look for:

• Coverage types
• Minimum limits
• Certificate holder name
• Certificate holder address
• Additional insured requirements
• Waiver of subrogation requirements
• Primary and noncontributory requirements
• Other endorsements

Step 2: Contact Your Insurance Agent or Broker

Tell your insurance professional that a customer has requested a Certificate of Insurance.

Provide the exact insurance requirements.

If possible, send the insurance section of the contract so your agent can review the requested provisions.

Step 3: Provide the Certificate Holder Information

Give your insurance provider the customer’s exact legal name and address.

Avoid guessing the name or using an informal abbreviation.

Step 4: Request Any Required Endorsements

If the customer requires additional insured status or other specific provisions, tell your agent.

A standard COI may not be sufficient to satisfy all contractual requirements.

Step 5: Review the Certificate

Once you receive the COI, check it before sending it to the customer.

Confirm that:

• Your business name is correct
• The insurance carrier is correct
• Policy numbers are correct
• Coverage types are correct
• Limits are correct
• Policy dates are current
• Certificate holder information is correct

Can Vendors Create Their Own COI?

Generally, vendors should not create their own insurance certificate and present it as official proof of coverage.

An official COI should be issued by an authorized insurance company, agent, broker, or other appropriate insurance professional.

This is particularly important because a certificate must accurately reflect actual insurance coverage.

For example, if a customer requires $2 million in liability coverage but the vendor has only $1 million, the vendor should not edit the certificate to show $2 million.

Instead, the vendor should discuss its options with its insurance provider.

How Much Does a Vendor COI Cost?

A standard Certificate of Insurance issued in connection with an existing policy may often be provided without a separate charge.

However, additional costs may apply if the customer requires the vendor to change its insurance.

Request	Possible Cost
Standard COI	May be included with existing insurance service
Higher coverage limits	May increase premium
New insurance policy	Additional premium may apply.
Additional coverage	May increase insurance cost
Certain endorsements	May involve additional cost

The actual cost depends on the vendor’s insurer, business operations, policy, and requested changes.

How Long Does It Take to Get a COI?

The timing varies.

A standard certificate based on existing coverage may be available quickly, particularly when the vendor’s insurance company or agent offers online certificate services.

Requests involving endorsements, increased limits, or policy changes may take longer.

For that reason, vendors should request a COI as soon as they receive a contract rather than waiting until the first day of work.

Common Vendor COI Mistakes

1. Sending an Expired Certificate

Always check the policy expiration date.

A customer may reject an outdated certificate.

2. Using the Wrong Legal Business Name

Make sure the entity performing the work is the entity identified on the insurance documentation.

3. Ignoring Contract Requirements

A customer may require more than basic general liability insurance.

Review the entire insurance section before requesting a COI.

4. Confusing Certificate Holder With Additional Insured

These are not interchangeable.

If additional insured status is required, discuss it with your insurance provider.

5. Editing the Certificate

Never change policy numbers, dates, limits, or other insurance information yourself.

Ask your insurance provider to issue a corrected certificate when necessary.

6. Waiting Until the Last Minute

If the customer’s requirements involve new coverage or endorsements, the process may take longer than expected.

Start early.

Vendor COI Checklist

Before submitting your Certificate of Insurance, use this checklist:

Requirement	Confirm
Correct legal business name	✓
Current insurance carrier	✓
Correct policy numbers	✓
Required coverage types	✓
Required limits	✓
Current effective dates	✓
Current expiration dates	✓
Correct certificate holder	✓
Additional insured requirement reviewed	✓
Required endorsements reviewed	✓
Description of operations reviewed	✓

Keeping copies of your current certificates can also make future vendor onboarding easier.

When Should a Vendor Provide an Updated COI?

A customer may request an updated certificate when:

• A policy renews
• A new contract begins
• Coverage changes
• Policy limits change
• The certificate holder changes
• A project is extended
• The customer’s insurance requirements change

For vendors with many customers, it can be helpful to maintain a simple record of certificate requests and insurance expiration dates.

What Happens If a Vendor Cannot Meet the Insurance Requirements?

If your existing insurance does not meet a customer’s requirements, do not modify the COI yourself.

Instead, contact your insurance agent or broker.

You may have several options, depending on the situation:

• Increase an existing coverage limit.
• Purchase another type of insurance.
• Add an applicable endorsement.
• Discuss alternative contractual requirements with the customer.
• Determine whether the requested coverage is appropriate for your business.

Whether a particular change is available depends on your insurer and policy.

It may also be possible to negotiate the contractual requirement with the customer, though that decision rests with the parties involved.

Final Thoughts

A Certificate of Insurance for vendors is an important part of the onboarding process for many U.S. businesses. Companies often request COIs to verify that vendors maintain the insurance required by a contract or business relationship.

The process is generally straightforward: review the customer’s requirements, contact your insurance agent or broker, provide the correct certificate holder information, request any necessary endorsements, and review the completed certificate before submitting it.

The most important thing to remember is that a COI is generally evidence or a summary of insurance coverage, not the insurance policy itself. The underlying policy and applicable endorsements determine the actual coverage.

Vendors should also understand the difference between a certificate holder and an additional insured. Listing a customer as a certificate holder does not automatically confer insured status.

Insurance requirements can vary substantially throughout the United States based on state law, industry, business activities, and contractual requirements. If you are unsure what coverage your business needs, speak with a licensed insurance professional.

Keeping your insurance current and your COI records organized can help you complete vendor onboarding faster, avoid unnecessary contract delays, and maintain strong relationships with the businesses you serve.