Everything you need to know about Certificates of Insurance, how they work, and why the current system is fundamentally broken.
A Certificate of Insurance (COI) is a document that provides proof of insurance coverage and is used to verify that a business or individual has the required insurance policies in place
A Certificate of Insurance is essentially a summary document that confirms an entity has active insurance coverage. Think of it as a "snapshot" of your insurance policies at a specific point in time. According to the Insurance Information Institute, COIs are one of the most commonly requested business documents in commercial transactions.
What coverage exists and how much
When coverage begins and ends
Who provides the coverage
Who is being provided the certificate
While COIs themselves are not insurance contracts, they serve as critical evidence of coverage in legal and business contexts. The National Association of Insurance Commissioners (NAIC) notes that COIs are often required for:
COIs are not insurance policies themselves, but rather evidence that insurance exists. This distinction is crucial for understanding their limitations.
Source: Insurance Information InstituteUnderstanding the COI process reveals both its utility and fundamental weaknesses in modern business operations
Business requests COI from vendor, contractor, or partner to verify insurance coverage exists.
Insurance agent or broker creates COI document based on current policy information in their system.
COI is delivered to requesting party, typically via email as a PDF document.
Requesting party reviews COI for compliance with their insurance requirements.
According to research by the Risk and Insurance Management Society (RIMS), the average COI request takes 3-7 business days to fulfill, involving multiple stakeholders:
| Stakeholder | Role | Typical Timeline |
|---|---|---|
| Insured Business | Receives request, contacts agent/broker | Same day |
| Insurance Agent/Broker | Generates COI document | 1-3 business days |
| Certificate Holder | Reviews and approves COI | 1-2 business days |
| Risk Management | Files and tracks COI expiration | Ongoing |
Studies show that 40% of COI requests require multiple rounds of revision due to incorrect information or formatting issues.
Source: RIMS Benchmark Survey 2023Understanding the different types of coverage typically shown on Certificates of Insurance
Protects against claims of bodily injury, property damage, and personal/advertising injury. Most commonly required coverage.
Covers employee injuries and illnesses arising from work-related activities. Required by law in most states.
Covers vehicles used for business purposes. Essential for any business that operates vehicles.
Covers errors and omissions in professional services. Critical for service-based businesses.
Covers damage to business property including buildings, equipment, and inventory.
Modern platforms like Umbra 360 automate the entire COI process, from request to verification.
Key metrics revealing the scale and challenges of COI management
Days to fulfill COI request
Source: RIMS Efficiency StudyOf COIs require revision due to errors
Source: Insurance Data AnalyticsAverage cost per uninsured loss incident
Source: Commercial Insurance ClaimsAnnual increase in COI requests
Source: Industry Benchmark ReportStop wasting time on manual COI tracking. Join the hundreds of organizations using Umbra 360 to automate certificate of insurance management and eliminate compliance risks.
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