Best Practices for Managing Certificates of Insurance (COI)

Certificates of Insurance (COIs) are a routine part of working with subcontractors, vendors, and project partners. While they may feel like standard paperwork, they play an important role in protecting your business from unintended risk.

Managing COIs consistently and carefully helps ensure that the coverage requirements outlined in your contracts are actually in place throughout a project.

What a Certificate of Insurance Covers

A Certificate of Insurance provides a summary of key policy details, including:

• Types of coverage

• Policy limits

• Effective and expiration dates

• The named insured

• Indications of additional insured status

It’s important to remember that a COI reflects coverage at a specific point in time. It does not replace the actual policy or automatically amend its terms. For that reason, reviewing certificates thoroughly — and requesting endorsements when appropriate — can help confirm that coverage aligns with contractual requirements.
 

Why COI Management Matters for Contractors

In construction, risk is often shared across multiple parties. Requiring subcontractors to carry certain limits and endorsements is part of transferring that risk appropriately.

If coverage lapses or falls short of what your contract requires, the exposure can shift back to your business. Keeping accurate and current COIs on file supports stronger risk management practices and may also help avoid complications during insurance audits.

A well-managed COI process demonstrates that your company takes compliance seriously.
 

Common Challenges in Tracking COIs

For smaller operations, tracking certificates in spreadsheets or shared folders may work effectively. As the number of subcontractors grows, however, managing renewals, corrections, and expiration dates can become more complex.

It’s not uncommon for certificates to arrive with incomplete information, incorrect entity names, or limits that don’t match contract requirements. Addressing these discrepancies takes time, especially without a consistent review process.

Having a structured approach in place can reduce last-minute follow-ups and improve efficiency.
 

Best Practices for Managing COIs

Establish Clear Insurance Requirements

Before requesting certificates, clearly define the coverage standards your subcontractors must meet. This may include minimum general liability limits, workers’ compensation coverage, umbrella policies, and specific endorsements such as additional insured or waiver of subrogation provisions.

Providing written requirements at the outset can help minimize revisions and confusion.

Use a Consistent Review Process

Developing a checklist for reviewing COIs can help ensure nothing is overlooked. For example, confirm:

• The legal business name matches the contract

• Policy dates extend through the project timeline

• Coverage limits meet minimum requirements

• Required endorsements are indicated

Consistency reduces variability and strengthens oversight.

Monitor Expiration Dates Proactively

Collecting a certificate at the start of a project is only part of the process. Policies renew and expire, sometimes mid-project.

Tracking expiration dates and requesting updated documentation in advance helps prevent coverage gaps. Whether this is managed through calendar reminders or digital tracking tools, assigning clear responsibility is key.

Verify Endorsements When Needed

In higher-risk or larger projects, reviewing the actual endorsement language may provide additional assurance that coverage meets expectations.

While not every job requires that level of review, understanding when it’s appropriate can strengthen your overall risk management strategy.
 

Keep Audit Implications in Mind

COIs can also affect premium audits. If subcontractor coverage cannot be verified, certain exposures may be reclassified, which can influence premium calculations.

Maintaining organized and accessible documentation can help streamline audit discussions and reduce unexpected adjustments.

Building a Stronger COI Process

Effective COI management supports the broader risk transfer strategy built into your contracts. Clear requirements, consistent review practices, and proactive tracking all contribute to a more reliable system.

As projects grow in size and complexity, refining your COI process can help protect your business from avoidable gaps in coverage. An independent insurance agent can also provide guidance on appropriate standards and help ensure your coverage expectations align with your overall risk profile.

Taking time to strengthen your approach today can help reduce complications down the road.