Certificate of Insurance (COI): What It Costs and Who Requires It
A certificate of insurance is the one-page document that proves you carry active GL coverage. The certificate itself is free. What costs money is the underlying policy that backs it, plus any unusual additional insured endorsements your client requests.
What a COI actually is
The standard COI is the ACORD 25 form, a one-page summary of your active commercial insurance policies. It lists what coverage you have, the limits, the policy period, and who is named as the certificate holder. The ACORD 25 is universally recognised across US commercial real estate, construction, and B2B services.
| Field | What it shows |
|---|---|
| Producer | Your insurance agency or broker |
| Insured | Your business name and address |
| Insurer | The carrier writing each policy |
| Policy type | GL, auto, workers comp, umbrella as applicable |
| Policy number | Unique identifier per policy |
| Policy period | Effective and expiration dates |
| Limits | Per-occurrence, aggregate, products-completed, umbrella |
| Description of operations | Often customised for the project or contract |
| Certificate holder | Who is receiving the certificate |
| Additional insured | Who is listed as additional insured (separate endorsement) |
Who typically requires a COI
Nine common requesters account for nearly all small-business COI traffic. Each has a typical limit expectation. Read the contract carefully before issuing a certificate; the limit and the additional-insured wording are commonly specified in writing.
| Requester | Typical minimum limit | Common additional requirement |
|---|---|---|
| Commercial landlord (small office / retail) | $1M / $2M | Additional insured, primary, non-contributory |
| Commercial landlord (mall / large building) | $2M / $4M + $1M umbrella | Plus property manager and ownership entity |
| General contractor (residential) | $1M / $2M | Additional insured for ongoing and completed operations |
| General contractor (commercial) | $2M / $4M + $5M umbrella | Plus owner, owner's reps, lender if specified |
| Property management company | $1M / $2M | Additional insured for vicarious liability |
| HOA / property owners association | $1M / $2M | Additional insured plus 30-day notice of cancellation |
| Government / municipal contract | $2M / $4M typical | State-specific additional insured wording |
| Event venue (one-time event) | $1M per event | Often available as short-term policy |
| Corporate client (B2B services) | $1M / $2M to $5M / $5M | Varies; read the MSA |
Additional insured endorsements explained
"Additional insured" status is a common and frequently misunderstood request. Three points to know:
What it does
It extends some of your policy's defence and indemnity protection to the named party for claims arising out of your work. If a client is sued for something you did, your policy can step in to defend them, sparing their own policy.
What it does not do
It does not give the additional insured access to your policy for claims unrelated to your work. It does not give them coverage for their own negligence (some endorsement forms do, others do not; confirm wording).
What it costs
Most standard additional insured endorsements (CG 20 10 / CG 20 37) cost $0 to $100 per endorsement. Many carriers include a blanket additional insured endorsement that automatically covers any party you contract with, eliminating the per-request cost.
How to get a COI
Email your insurance agent with the certificate holder's name, address, and any specific endorsement language the client has requested. Most agents respond within a few hours. If the request requires unusual endorsements (state-specific additional insured wording, waiver of subrogation, primary and non-contributory language), expect a 24- to 72-hour turnaround.