What Is The Meaning Of COI For Delivery Sectors?

When one moves in or out of an apartment, has food delivered, or hires a contractor to work on the home, the contractor or supplier usually provides a Certificate of Insurance (COI) before entering the building. COI proves that the company one does business with has insurance if something goes wrong or someone gets hurt. Certificate insurance monitoring will ensure that the company has an insurance policy that covers liability and losses up to the required insurance limit for your building. So if something happens to the product, the accident is insured.

What is a Certificate of Insurance (COI)?

A COI or certificate of insurance is a document by an insurance company or broker. It confirms the existence of an insurance contract and summarizes the most important aspects and terms. For example, standard COI includes the policyholder’s name, the policy’s effective date, the type of insurance, the insurance limit, and other important insurance details. Without COI, companies or contractors will struggle to attract customers as they are likely unwilling to risk the costs that the contractor or vendor may incur.

How does the Certificate of Insurance (COI) work?

A Certificate of Insurance (COI) is used when liability and serious loss are significant, and a COI is required. It applies to most business contexts. The insurance card proves that the company is insured.

Small business owners and contractors often have COI to prove they have insurance that protects them from liability for work-related accidents and personal injury. The insurance company usually issues an insurance card when one takes out liability insurance.

Without COI, it is difficult for business owners and contractors to get business. As many businesses and individuals employ contractors, clients want to know if the business owner or contractor has liability insurance to avoid damage, injury, or substandard work.

When does one need to provide COI?

Often one needs COI to get business. With certificate insurance monitoring, parties can be confident that the company has the necessary insurance if something goes wrong. Here are some common scenarios where the owner might have to provide proof of insurance:

  • Entering into contracts with new customers or suppliers
  • Sign leases for new spaces
  • Equipment rental
  • Show investors when raising capital. Most investors will ask the owner to provide proof of having directors’ and officers’ insurance.
  • Within the company, everyone has a basic understanding of company reporting.

How to get an insurance card?

Suppose someone wishes to request COI from a contractor or company. In that case, they must obtain COI from an insurance company or provide the insurance company’s contact information to request this proof directly. However, be careful when asking the provider to offer COI. There are documented cases of contractors submitting fraudulent COI.


A Certificate of Insurance (COI) may be required in various situations. Customers typically request COI directly from their insurance company to ensure they are properly insured. One should consider getting the COI from an insurance company if one hires a contractor. Certificate insurance monitoring is a must, even for business persons or relations.