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How To Get a Certificate of Liability Insurance for Your Business

Author: Jason Morrison | June 1, 2023

Edited by: Jason Morrison and Reviewed: Jason Morrison

When it comes to protecting your business and demonstrating your commitment to risk management, obtaining a Certificate of Liability Insurance (COI) is a vital step. A COI serves as proof that your business carries liability insurance coverage and provides essential information to clients, partners, or other parties who may require it.
By comprehending the process of obtaining a COI and recognizing its significance, you can navigate the complexities of insurance requirements. This understanding also aids in building trust in your business relationships.

What is a Certificate of Liability Insurance?

A Certificate of Liability Insurance (COI) is an official document issued by an insurance company. It serves as tangible evidence, demonstrating that an individual or business holds liability insurance coverage. The COI contains essential details about the insurance policy, such as the specific types of coverage provided, the limits of the policy, the effective dates of coverage, and the name of the insured party.

By presenting a COI, businesses can showcase their financial preparedness and ability to address potential risks, whether they involve accidents, damages, or legal claims. Furthermore, the COI plays a crucial role in fostering trust, credibility, and compliance within the realm of business relationships

What Does a Certificate of Liability Insurance (COI) Include?

A typical certificate for liability will include

  • The name and policy number of your insurer
  • Your company’s name, contact information, and address
  • List of insurers that have provided coverage for your business
  • A description of the operations, vehicles, and location of your company
  • The effective dates for the policies
  • The names of all insured parties
  • Your policy limits
  • Signatures of the persons authorized by the insurer that approves the certification of the insurance

While this form will usually show information about your general liability insurance, it can also offer details about other policies like commercial auto insurance, excess liability insurance, and workers’ compensation insurance. 

Most insurers may issue COIs on the standard forms published by ACORD, the Association for Cooperative Operations Research and Development. This non-profit research organization is for the insurance industry globally.

Does Your Business Need A Certificate of Liability Insurance?

A COI is often requested by a client, partner, or leasing company to ensure they are listed as an additional insured. The COI should be properly dated and include the required additional insured parties.

Some of the other reasons why you would need a certificate for liability insurance are:

  • When your landlord needs proof of general liability insurance so they can rest assured that their property is protected against any potential damage.
  • When your business partner wants to check if you have workers’ compensation insurance before they get into a contract with you – your worker’s compensation insurance will also appear on your certificate of liability insurance.

What Will My Business Income Insurance Cost?

Most often, your general insurance provider will offer liability insurance certificates at no charge to their existing policyholders. This is one of the reasons you need a business insurance, policy before getting access to a COI. 

The cost of business insurance will depend on the kind of services your company provides, the number of workers in your association, whether or not you have filed any claims in the past, and other factors. Once you have understood what type of business insurance your company needs you can get quotes from different insurance companies to determine which works best for your company.

The COI may be complimentary with some insurers or can cost as much as $25 per COI.

How to Get A Certificate of Liability Insurance For Your Business?

Three main steps involved in the process of getting a certificate of liability insurance are as follows: 

Step 1: Getting General liability insurance 

To get COI insurance, you need general liability insurance, which you can shop for online or with a business insurance agency near you. 

Step 2: Check If They Offer Online COIs

Most insurance providers let you access a COI in their online dashboards. All you need to do is enter your policy number and email address to generate your COI. 

Step 3: Apply For A COI

If you cannot generate an online COI, you may need to fill out an online form or send in a request for a COI through email. This process may need a couple of hours, or you could receive the COI instantly. 

Key Takeaways

A certificate of liability insurance usually serves as proof that your company has commercial liability insurance. It also offers an overview of all the liability policies you have and their effective dates, limits, and numbers. Talk to your insurance agent or broker to find out how to get a COI. As soon as you realize that you need a Certificate of Insurance, it is advisable to begin the application process. This will help prevent any delays in commencing your work or leasing.

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