To verify a certificate of insurance, check that the named insured matches your vendor's legal name, every policy is in force for the whole job, the limits meet your contract, and the additional insured and waiver of subrogation boxes are marked where your contract needs them. Then remember the certificate only describes the policy. When the job carries real risk, ask the agent for the endorsements themselves.
What does a certificate of insurance actually prove?
In the US, most vendors and subcontractors send a certificate on the standard ACORD 25 form. It is issued by the vendor's insurance agent or broker. ACORD only publishes the form.
The most important line is at the top of the form: the certificate "is issued as a matter of information only and confers no rights upon the certificate holder." ACORD's own certificates FAQ says a certificate does not amend, extend or alter the terms of a policy, and that only an endorsement or amendment to the policy can change coverage.
So a COI is good evidence that a policy exists, with these dates and these limits. It is not the policy, and a box ticked on the certificate does not create coverage that the policy does not have.
What should you check on an ACORD 25?
Work through the form from top to bottom. Each section answers a different question.
| Section | What to check | Common problem |
|---|---|---|
| Producer | The agent or broker who issued it | No phone or email, so nobody to call |
| Insured | Matches the vendor's legal name on the W-9 and contract | Parent company, trade name or the owner's personal name |
| Type of insurance | Every coverage your contract requires is listed | Workers' compensation or umbrella missing |
| Policy number, POLICY EFF, POLICY EXP | In force today and through the end of the job | One policy expires mid-project |
| Limits | Meet or exceed your contract minimums | Aggregate meets the minimum but each occurrence does not |
| ADDL INSD and SUBR WVD | Marked on the policies your contract names | Marked on general liability only, when the contract also names auto |
| Description of operations | Names your project, location or contract where required | Blank, or describes a different job |
| Certificate holder | Your correct legal name and address | An old company name or a different branch |
The INSR LTR column ties each policy to the insurer listed in the top section, so you can see which company writes which cover.
How do you compare the limits with your contract?
Before you open the certificate, pull the insurance clause from your contract or subcontract into a short list: coverage type, the limit, and any special wording. Then compare line by line.
Watch the labels. General liability shows several limits, including Each Occurrence, General Aggregate and Products-Comp/Op Aggregate. If your contract asks for a per-occurrence limit, the aggregate does not satisfy it. Auto liability usually shows a Combined Single Limit. Workers' compensation shows employers' liability limits for each accident and for disease.
If your contract allows limits to be met with an umbrella or excess policy, you can add the umbrella to the primary limit. If it does not say so, the primary policy has to meet the minimum on its own. When in doubt, ask whoever owns the contract.
Why isn't the additional insured checkbox enough?
The ACORD 25 says this itself, in a box near the top. If the certificate holder is an additional insured, the policy must have additional insured provisions or be endorsed. If subrogation is waived, certain policies may require an endorsement.
In practice, this means:
- ADDL INSD marked tells you the agent believes you are covered. The endorsement on the policy decides whether you are, and for what.
- SUBR WVD marked tells you a waiver is claimed. Some policies need an endorsement for the waiver to apply.
- Description of operations often carries wording like "certificate holder is included as additional insured." It is still a description, not the endorsement.
For routine, low-risk purchases, the certificate may be all your policy asks for. For work on your premises, construction, or any contract where you are relying on being an additional insured, ask the agent for a copy of the additional insured endorsement and the waiver of subrogation endorsement, and keep them with the certificate.
When should you call the agent?
A certificate is a PDF, and PDFs can be edited. Call the producer when:
- The insured name does not match the vendor you are hiring
- Dates, fonts or alignment look edited
- A limit sits just at your minimum and the job is large
- You need the endorsement wording, not just the checkbox
- A policy expires within the next few weeks
Find the agent's number independently, for example on the agency's own website, rather than relying only on the certificate. Ask them to confirm the policy numbers, the dates, the limits, and whether your company is covered as additional insured.
Certificate of insurance checklist
- Insured name matches the vendor's legal name on the W-9 and contract
- Every coverage type the contract requires is listed
- Each policy is in force today and runs past the end of the work
- Each limit meets or exceeds the contract minimum, using the right limit label
- Umbrella used only if the contract allows it
- ADDL INSD marked on each policy the contract names
- SUBR WVD marked where the contract requires a waiver
- Description of operations names your project or contract, if required
- Certificate holder shows your correct legal name and address
- Endorsements requested and filed for higher-risk work
- Producer contact recorded, and anything odd confirmed by phone
How do you track certificate of insurance expiry?
A certificate is accurate on the day it is issued. After that, policies renew, lapse or get cancelled, and the certificate does not update itself.
- Track every policy, not every certificate. One certificate can list general liability, auto, umbrella and workers' compensation with four different expiry dates.
- Set a reminder ahead of each expiry. Pick a lead time that gives the vendor enough time, then ask for the renewal certificate before the old one runs out.
- Do not rely on cancellation notices. The ACORD 25 says notice will be delivered in accordance with the policy provisions, and ACORD notes that a typical liability policy obliges the insurer to notify only the first named insured. That is your vendor, not you.
- Recheck when the job changes. A new project or a higher contract value can mean new limits or new additional insured wording.
- Keep the old certificates. They show what cover was in place while the work was done.
How SensiDocs helps
The SensiDocs Vendor Compliance pack reads certificates of insurance (ACORD 25) alongside W-9s, W-8s, banking forms and business licenses. It checks that coverage has not expired and that you are listed as additional insured, accepts a value only when it is confident, and flags anything that needs a person with a plain reason. When something is missing or wrong, it drafts a short message to the vendor saying exactly what to correct, and a person reviews it before it is sent. You can export results to CSV or Excel, and you pay only for documents it reads correctly. Every account starts with 5 free results at https://sensidocs.com.