Certificate of Insurance

What is Certificate of Insurance?

A Certificate of Insurance (COI) is a document issued by an insurance company or broker that summarizes a company's insurance coverage. For construction companies, this typically includes Commercial General Liability (CGL) insurance, which covers third-party bodily injury, property damage, and related claims. The COI lists policy numbers, coverage limits, effective dates, and named insureds. It serves as proof that a contractor carries adequate insurance to cover potential damages arising from their work.

Virtually every construction company needs a Certificate of Insurance. General contractors, project owners, and property managers require subcontractors to provide COIs before allowing them on site. Many contracts specify minimum coverage amounts (commonly $2 million to $5 million CGL in Canada). Without a valid COI, a contractor cannot bid on most projects, cannot be approved as a subcontractor, and will be denied site access.

Why Expiration Tracking Matters

Insurance policies have annual renewal dates, and a COI is only valid for the policy period it references. An expired COI means the listed coverage may no longer be in effect. If a contractor's insurance lapses and an incident occurs, the company faces catastrophic financial exposure — a single construction liability claim can run into millions of dollars. General contractors who allow uninsured subcontractors on site also face significant legal and financial risk.

Provincial Requirements & Regulations

While insurance requirements are primarily contractual rather than legislated, provincial construction associations and project specifications set industry standards. In most Canadian provinces, a minimum of $2 million CGL coverage is standard for construction companies. Some large projects or government contracts may require $5 million or higher. Additional coverages like professional liability, pollution liability, or umbrella policies may be required depending on the scope of work and project specifications.

Renewal Process

Insurance policies are typically renewed annually. Your insurance broker will issue updated COIs with new policy periods upon renewal. Companies should request updated certificates at least 30 days before the current policy expires to ensure continuous coverage documentation. When additional insureds need to be added (a common requirement in construction contracts), the broker can issue amended certificates.

Common Mistakes to Avoid

• Not requesting updated COIs from your broker after policy renewal — the old certificate shows expired dates
• Failing to add the general contractor or project owner as an additional insured when required by contract
• Not verifying that coverage limits meet the project's minimum requirements before bidding
• Assuming one COI covers all projects — some contracts require project-specific certificates with specific endorsements

Issuing Authority

Insurance Provider

Contact

Your insurance broker

Frequently Asked Questions