Certificate of Liability Insurance: What It Is, What It Proves and What It Doesn't

A certificate of liability insurance (COI) is a one-page summary showing that a business had certain liability policies in force on the day it was issued. Clients, landlords and general contractors ask for one before work starts. It is evidence, not coverage.

Key takeaways

• The standard liability form, the ACORD 25, says on its face that it “confers no rights upon the certificate holder” [1].
• Being the certificate holder is not the same as being an additional insured. That status needs the policy itself, usually an endorsement [1].
• New York, Georgia, Texas and Washington all have laws or rules that bar a certificate from changing what the policy covers [5][6][7][4].
• A newer ACORD 25 edition (2025/12) warns that the limits shown may be only what the holder asked for, not the full policy limit [2].

What is a certificate of liability insurance?

A certificate of liability insurance is a document issued by an insurer or agent as evidence that a business carries specific liability policies, with their policy numbers, dates and limits. Washington’s rule defines a certificate as any document issued “as evidence of property or casualty insurance coverage,” whatever its title [5].

The person or company that receives it is the certificate holder. Washington defines that as anyone other than the policyholder who “requests, obtains, or possesses a certificate” [5]. The business that owns the policy is the named insured.

You’ll hear it called a COI, a liability insurance certificate, an ACORD certificate or proof of insurance. Standard certificate forms come from ACORD (the Association for Cooperative Operations Research and Development) and ISO [8]. ACORD’s liability form is the ACORD 25, titled “Certificate of Liability Insurance” [1]. It usually covers general liability insurance plus any auto, umbrella and workers’ comp policies the business carries.

A certificate is not the policy and not the declarations page. It’s a snapshot. If the policy is canceled the next day, the certificate in the client’s file doesn’t change.

What does a certificate prove, and what doesn’t it?

The ACORD 25 spells out its own limits in capital letters at the top of the page [1]:

• It is “issued as a matter of information only.”
• It “does not affirmatively or negatively amend, extend or alter the coverage” of the policies listed.
• It “does not constitute a contract” between the insurer, the agent and the certificate holder.
• The coverage shown is “subject to all the terms, exclusions and conditions” of the policies, and “limits shown may have been reduced by paid claims.”

State regulators back this up. Several states have written it into law:

The practical upshot: whatever a client writes into its contract, the certificate can only report what the policy already says. If the contract asks for more, an independent insurance agent has to change the policy first.

How do you read an ACORD 25?

The ACORD 25 is laid out the same way every time, which makes it quick to check once you know the boxes [1]:

The auto row maps to a commercial auto policy, and the umbrella row to a commercial umbrella. If a contract requires $2 million but the business carries $1 million of general liability, an umbrella is the usual way to close the gap.

What changed in the 2025 edition

A December 2025 edition, ACORD 25 (2025/12), adds a sentence to the coverage box: limits shown “are inclusive of amounts requested by the certificate holder and may not reflect policy limit amounts in excess of those requested” [2]. The form marks that note “Not Applicable in WY.” TDI approved the form on October 10, 2025 [3].

Illustration only: A contractor carries a $2 million per-occurrence limit. A client asks for proof of $1 million. On the new edition, the certificate may show $1 million. That’s the requested amount, not a cap on the policy.

Certificate holder vs. additional insured

This is the distinction that matters most. A box on the ACORD 25 reads: if the certificate holder is an additional insured, “the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed,” and a statement on the certificate “does not confer rights to the certificate holder in lieu of such endorsement(s)” [1].

In plain terms, typing “ABC Properties is additional insured” in the description box does nothing unless the policy says so. Texas regulators tell agents to tick the additional insured box when the policy includes an endorsement naming the holder [4]. If the policy has only a blanket additional insured endorsement, the certificate can say that, but can’t name the holder as an additional insured [4].

Even a proper endorsement has limits. The common ISO form CG 20 10 04 13 covers the additional insured only for injury or damage caused, in whole or in part, by the named insured’s acts during ongoing operations.

It excludes injury or damage that happens after the work is completed, and, when a contract requires the coverage, pays no more than the contract requires or the policy limit, whichever is less [9].

Waivers of subrogation work the same way: the “SUBR WVD” box is a flag, and the endorsement does the work [1]. Our guide to waiver of subrogation covers how those endorsements work and what they cost.

Who asks for a COI, and what do they look for?

Travelers lists contractor agreements, leases and vendor relationships as common triggers [12]. In practice, requests come from:

• General contractors and project owners, from subcontractors, before anyone sets foot on site.
• Landlords and property managers, from commercial tenants. The general liability row has its own “damage to rented premises” limit [1], which is worth checking against the lease.
• Clients and venues, from vendors, consultants and event suppliers. Professional-services clients may also want proof of professional liability insurance.
• Government agencies, which may add their own paperwork. New York City, for example, requires most certificates to come with a notarized certification from the broker or agent, or certified copies of the policies [9].

University of California, Riverside’s risk office publishes a review checklist for vendor certificates. It checks that the insured is the vendor’s legal name, the required policy types are listed, the university is named additional insured, policy dates span the contract, limits meet the contract, and the certificate is signed [11].

How do you get a certificate of liability insurance?

You need a policy first. A certificate reports coverage. It can’t be bought on its own.

1. Buy the coverage the contract requires. Compare the business coverage types against the contract’s insurance section. For many small firms that’s general liability, often bundled with property in a business owner’s policy.
2. Send your agent the insurance section of the contract, not just the holder’s name. Endorsements like additional insured and waiver of subrogation have to be added to the policy first.
3. Give the holder’s exact legal name and address, plus any project name or number.
4. Check the certificate before you forward it. Make sure names, dates and limits match the contract.

Certificates are typically free once the policy is in force [12]. One commercial carrier says most requests are turned around within a day or two [15]. In Texas, the agent issuing the certificate must hold an appointment with the insurer that wrote the policy [4].

Not sure which coverages your contracts will ask for? The business insurance calculator walks through the common ones.

How do you verify a COI you’ve received?

A certificate can be outdated, wrong or forged. GEICO suggests confirming the details directly with the issuing broker or insurer and watching for mismatched policy numbers, company names or formatting [13].

• Call the producer listed on the form, not a number the vendor gives you.
• Ask for the endorsements. In Texas, nothing in Chapter 1811 stops an agent from sending copies of the policy or endorsements [4].
• Check the aggregate. Illustration only: a policy with a $2 million general aggregate that has already paid $600,000 in claims this year has $1.4 million left. The form warns that limits may have been reduced by paid claims [1].
• Diary the expiration dates and ask for a renewal certificate before they lapse.

Don’t count on hearing about a cancellation. Washington and Texas both say a holder has a right to cancellation notice only if it’s named in the policy or an endorsement that requires notice [5][4]. The ACORD 25 promises only that notice will follow “the policy provisions” [1].

Workers’ comp, surety bonds and other certificates

The ACORD 25 isn’t the only certificate, and sometimes it isn’t accepted.

Workers’ comp. The ACORD 25 has a workers’ compensation row, but some states want their own form. New York’s Office of Victim Services, for example, tells vendors that ACORD forms are NOT acceptable proof of New York workers’ comp or disability coverage for state permits and contracts. It accepts Form C-105.2 sent by the carrier, the State Insurance Fund’s U-26.3, or a CE-200 exemption, among others [10]. The C-105.2 itself says brokers are not authorized to issue it [9].

Surety bonds. A surety bond isn’t an insurance policy, so a liability certificate won’t prove one. A bond has three parties: the principal, the obligee and the surety. It protects the obligee, and the surety expects to be repaid by the principal if it pays a claim [14]. If a contract asks for a bond, ask for a copy of the bond itself.

Property and builders risk. ACORD files separate forms for property, including the ACORD 24 Certificate of Property Insurance, ACORD 27 Evidence of Property Insurance and ACORD 28 Evidence of Commercial Property Insurance [3]. The ACORD 28 is the one tied to commercial property insurance. A lender or owner asking about a building, or a builders risk policy on a project, may want one of these instead of an ACORD 25.

COI requests that cross the line

Some certificate requests ask agents to do things state law forbids. Watch for these:

• “Coverage per contract #123” wording. Texas and Georgia bar certificates from referencing requirements in a construction or service contract. A job or contract number for identification is allowed [4][6].
• Custom 30-day cancellation promises. Texas allows them only when they mirror the policy’s own notice terms [4].
• Naming the holder as additional insured without an endorsement. Covered above [1][4].
• Holder-drafted certificate forms or questionnaires. Texas allows only TDI-approved certificates and bars supplemental questionnaires [4]. New York bars demanding certificates on forms other than the insurer’s own or an approved standard form [7].

If a client insists, the fix is to change the policy, not the paperwork. A local independent agent can tell you which endorsements are available and what they cost.

Frequently asked questions

Where do I get my certificate of liability insurance?

From the insurance company or agent that sold your policy. Some carriers, Travelers among them, also let customers request certificates through an online portal [12]. If you don’t have an agent yet, start with insurance agents near you.

Who fills out a certificate of insurance?

The insurer or its agent (or a surplus lines broker), not the business owner or the certificate holder [5]. Some forms are restricted further: New York’s C-105.2 workers’ comp certificate can be issued only by carriers and their licensed agents [9].

Is a certificate of insurance free?

Usually, yes. Insurers typically issue certificates at no extra charge once a policy is active [12]. The cost is in the underlying coverage and any endorsements the contract requires.

Can a certificate of insurance expire?

The certificate reflects the policy period printed on it. Once the policy expires or is canceled, the certificate no longer shows current coverage, so holders should ask for an updated one at each renewal [13].

Is an ACORD certificate the same as a certificate of liability insurance?

Usually. ACORD publishes many certificate forms, and the ACORD 25 is the one titled “Certificate of Liability Insurance” [1]. Property, vehicle and other forms have different numbers [3].

The bottom line

A certificate of liability insurance proves a policy existed when the certificate was printed, and nothing more. The rights a client or landlord actually needs, such as additional insured status, a waiver of subrogation or cancellation notice, come only from the policy and its endorsements. Read the form, verify it with the producer, and fix gaps in the policy, not on the certificate.

Sources

1. ACORD 25 (2016/03), Certificate of Liability Insurance, blank fillable specimen (hosted by The Allegany Group). alleganygroup.com
2. ACORD 25 (2025/12), Certificate of Liability Insurance, as filed with the Texas Department of Insurance (filing S733101). tdi.texas.gov
3. Texas Department of Insurance, “Property and Casualty Certificates of Insurance” (approved-forms listing). tdi.texas.gov
4. Texas Department of Insurance, “Certificates of Insurance Frequently Asked Questions” (Insurance Code Chapter 1811). tdi.texas.gov
5. Wash. Admin. Code 284-30-355, Certificates of insurance (current text and version effective Oct. 18, 2026). app.leg.wa.gov
6. Ga. Comp. R. & Regs. 120-2-103, Certificates of Insurance. rules.sos.ga.gov
7. N.Y. Insurance Law § 502, Prohibitions. nysenate.gov
8. Iowa Insurance Division, Bulletin 10-04, “Certificates of Insurance” (July 13, 2010). iid.iowa.gov
9. NYC Department of Youth and Community Development, “FY2023 Proof of Insurance Sample Package” (includes ISO CG 20 10 04 13, NYS Form C-105.2 and the City’s broker certification). nyc.gov
10. New York State Office of Victim Services, “Proof of Insurance: Workers’ Compensation Requirements Under Workers’ Compensation Law §57” (3/17). ovs.ny.gov
11. University of California, Riverside, Risk Management, “Certificates of Insurance.” risk.ucr.edu
12. Travelers, “What Is a Certificate of Insurance?” travelers.com
13. GEICO, “What Is a Certificate of Insurance (COI)? Definition, When It’s Needed, and How to Verify.” geico.com
14. RLI, “Surety Bonds vs. Insurance Policies” (Feb. 25, 2025). rlicorp.com
15. Progressive Commercial, “Certificate of Insurance (COI).” progressivecommercial.com