Should I Ask Contractors and Vendors for a Certificate of Insurance?

By Bill Stilwell · Last reviewed October 17, 2026

The short answer

A certificate of insurance (COI) is a one-page summary from a vendor’s insurance agent that shows what coverage they carry, the limits, and the dates. Ask for one before a vendor or subcontractor works on your site or your customer’s property, check that it covers what your agreement requires, and get a new one before it expires. Your insurance professional can tell you what coverage and limits to require.

What this means

A COI lists:

The insured: the vendor’s legal business name
The insurance company and policy numbers
Coverage types, such as general liability, commercial auto, workers’ compensation, professional liability, or cyber
Limits: the most the policy pays per claim and in total
Policy dates: when coverage starts and ends
Certificate holder: usually your business
Additional insured status, if you asked for it and the vendor’s policy allows it

“Additional insured” means your business is added to the vendor’s policy for claims that come from the vendor’s work. It’s a common requirement in construction and property work. Your agreement has to ask for it, and the vendor’s insurance company has to agree.

Made-up example: Valley View Property Management requires every vendor who works on its buildings to send a COI showing general liability, commercial auto, and workers’ compensation, with Valley View listed as additional insured. The office manager keeps a list of expiration dates and emails each vendor 30 days before theirs runs out.

Why it matters

Uninsured work shifts the risk to you. If a vendor causes damage or injury and has no coverage, the claim may come to your business.
Workers’ compensation rules come from the state. Many states require employers to carry it. Some states can hold a hiring business responsible if its uninsured subcontractor’s worker is hurt. Check with your state workers’ compensation agency (see 10.3.7 Workers’ Compensation).
Policies lapse. A COI from last year may show coverage that no longer exists.
Customers and property owners may ask you for proof that your subs are covered.

Who this applies to

Any business that brings in vendors or subcontractors to work at its site or a customer’s site, or to do work that could cause injury, damage, or a data loss. Office supply deliveries and software subscriptions usually don’t need a COI, though software vendors that handle customer data may need cyber coverage (see 10.8.6 Cyber Insurance).

How to do it

Ask your insurance professional what coverage types and limits to require for each kind of vendor (see 6.3.4 Insurance Professional).
Put the requirements in the agreement: coverage types, minimum limits, additional insured status if needed, and a duty to send a new COI at renewal (see 11.2.1 Vendor Agreement).
Request the COI from the vendor’s insurance agent, not a copy the vendor made. A certificate sent straight from the agent is harder to fake.
Check it before work starts: business name matches the agreement, coverage types are there, limits meet your minimums, dates are current, and your business is listed correctly.
Call the agent if anything looks off. A COI is a summary. It doesn’t change the policy.
Track expiration dates in a list or your vendor log, with reminders 30 days ahead.
Stop work if a required policy lapses until a new COI arrives.

What proof to keep

Every COI, with the date received
The agreement section listing insurance requirements
Your tracking list with expiration dates
Notes on any calls to agents to confirm coverage
Additional insured endorsements, if you required them

Common mistakes

Accepting a COI with a different business name than the one on the agreement.
Filing it and forgetting it. Policies expire, often yearly.
Assuming the COI gives you rights. Being a certificate holder alone usually doesn’t. Additional insured status has to be added to the policy itself.
Not checking workers’ compensation for subs with employees.
Asking for the same coverage from every vendor. A window washer and a bookkeeper have different risks.

When to get help from a pro

Insurance professional: to set requirements and review certificates. Questions to ask:

What coverage types and limits should I require from each kind of vendor?
Should I require additional insured status, and how do I confirm it was added?
What happens to my policy if an uninsured sub’s worker is hurt on my job?

Bill’s note

[Bill: add a short note. For example, which SiteSmarty vendors you ask for proof of insurance and why, or a story from a client who learned about certificates the hard way.]

How I did this for SiteSmarty

[Date I did this:]
[What I actually did, step by step: the coverage I require, how I request certificates, and how I track them]
[What it cost and how long it took:]
[What surprised me or what I’d do differently:]
[Screenshot or photo to add, with private info blurred: the certificate tracking list]
[Result so far:]

Questions people ask

What is a certificate of insurance? A one-page summary of a business’s insurance coverage, limits, and dates, issued by its insurance agent.

What does “additional insured” mean? Your business is added to the vendor’s policy for claims caused by the vendor’s work. It has to be requested and added to the policy.

How often should I get a new certificate? Before work starts, and again whenever a policy renews or expires, usually once a year.

What if my subcontractor has no workers’ compensation? Check your state’s rules and talk to your insurance professional before they start. Some states can hold you responsible.

Audit check

Question: Is a current certificate of insurance on file for every vendor and subcontractor whose agreement requires one?
Pass looks like: COIs sent by agents, matching names, required coverage and limits, current dates, and a tracking list with reminders.
Fail looks like: Missing or expired COIs, wrong business names, or no workers’ compensation for subs with employees.
Evidence to collect: COIs, agreement insurance clauses, the tracking list, and endorsement copies.

Where this fits

Do this first: 11.2.1 Vendor Agreement, 11.2.3 Subcontractor Agreement, 10.8.1 General Liability Insurance

Do this next: 11.2.7 Data-Processing Terms

Sources

U.S. Small Business Administration (SBA), "Get business insurance" (checked October 17, 2026)

This page explains general rules and Bill's own experience. It is not legal, tax, or insurance advice. Talk to a qualified professional about your situation.