Vendor setup · Certificates of insurance
How a certificate of insurance works
A COI is the certificate of insurance you hand a community. Here is what’s on it, what “additional insured” and “certificate holder” mean, and what the limits show.
What a certificate is
- A certificate of insurance is a document that provides information about insurance policies. ACORD, as of
- A certificate generally lists one or more lines of insurance, the limits for those coverages, and the insurer. ACORD, as of
- A policyholder gets a certificate from its broker or agent, not from ACORD. ACORD, as of
- A certificate is not an insurance policy and does not provide, amend, extend or alter the policy's terms. ACORD, as of
- Only an endorsement, rider or amendment to the policy can change coverage. ACORD, as of
Certificate holder
- The third parties who request certificates are called certificate requestors or holders. ACORD, as of
- A certificate gives the certificate holder no rights to the underlying insurance, and the holder is owed no duty of cancellation notice (Connecticut Insurance Department bulletin, Nov. 9, 2010). Connecticut Insurance Department, as of
Additional insured
The definitions below come from state insurance regulators. Ask your agent how this works in your state.
- An additional insured is a person or entity the insurer adds to the policy as an insured at the policyholder’s request; a certificate holder is not the same thing (NY DFS opinion, Sept. 27, 2010). New York State Department of Financial Services, as of
- A certificate does not make the holder an additional insured; that takes an Additional Insured endorsement, or being named an insured in the policy (Connecticut Insurance Department bulletin, Nov. 9, 2010). Connecticut Insurance Department, as of
- In Texas, if the policy has only a blanket additional insured endorsement, the certificate cannot name the holder as an additional insured, though it may say a blanket endorsement exists. Texas Department of Insurance, as of
- In Texas a person has a legal right to cancellation notice only if named in the policy or an endorsement and the policy or law requires notice. Texas Department of Insurance, as of
Endorsements
- An endorsement is an amendment or rider to a policy that adjusts coverage and takes precedence over the general contract. NAIC, as of
- CAI tells boards to get certificates of insurance for the contractor and, in some cases, additional insured endorsements naming the association, after consulting counsel. Community Associations Institute (CAI Foundation), as of
- CAI says to weigh the pros and cons of having the association named on the contractor's insurance. Community Associations Institute (CAI Foundation), as of
What the limits show
Each community sets its own requirement, so there is no one amount to aim for.
- A policy’s limits are the most it will pay. NAIC, as of
- An occurrence is an accident, including exposure to conditions, that causes bodily injury or property damage neither expected nor intended from the standpoint of the insured, during the policy period. NAIC, as of
- An aggregate limit is the most a policy will pay for one loss or for several losses combined during the policy period, or on a single project. NAIC, as of
- The current ACORD 25 warns that the limits shown may be only the amounts the certificate holder asked for, not the full policy limits. ACORD, as of
The ACORD form
Your agent or broker prepares your certificate. Use the link below for the form itself, since we don’t reproduce it.
- ACORD publishes a form called the ACORD 25, a Certificate of Liability Insurance. ACORD, as of
- ACORD describes the ACORD 25 as one of the most widely used forms in the insurance industry. ACORD, as of
- ACORD says it has published the standard forms used by the insurance industry since 1971. ACORD, as of
An example, with made-up data
This is our own illustrative layout. Every name and number on it is made up.
Sources
- What is a Certificate of Insurance? (ACORD FAQ) ACORD. As of .
- Bulletin S-14, Use of Certificates of Insurance (Nov. 9, 2010) Connecticut Insurance Department. As of .
- Office of General Counsel Opinion No. 10-09-12 New York State Department of Financial Services. As of .
- Certificates of Insurance Frequently Asked Questions Texas Department of Insurance. As of .
- Glossary of Insurance Terms National Association of Insurance Commissioners (NAIC). As of .
- Community Association Maintenance (best practices) Community Associations Institute (CAI Foundation). As of .
- ACORD Forms Notification, December 2025 Bulletin ACORD. As of .
- ACORD Forms Notification, July 2026 Bulletin ACORD. As of .
- ACORD Forms ACORD. As of .
Official pages change. Each line shows the day we last read it.