What a certificate of insurance is, and how to verify one

Last reviewed Oct 11, 2026. General information from official state sources, not legal or insurance advice.

Before a contractor starts work on your home, it's reasonable to ask for proof of insurance. What you'll usually get is a certificate of insurance, often called a COI: a one-page summary of the contractor's policies. It's useful, but it has limits. Here's how to read one and how to confirm it's real.

What a certificate of insurance is

A COI is a short form, usually issued by the contractor's insurance agent, that lists the policies the business carries. For liability insurance this is commonly a standard industry form called the ACORD 25. A typical COI shows:

• The insured: the contractor's business name and address
• The insurance companies and policy numbers
• The policy dates: when each policy starts and ends
• The limits: for example, a per-occurrence and an aggregate amount for general liability
• Other policies, such as workers' compensation or commercial auto
• The certificate holder: the person or organization the certificate was issued to

What a COI can't do

A certificate is evidence of insurance, not the insurance itself. Texas law states it plainly: "A certificate of insurance is not a policy of insurance and does not amend, extend, or alter the coverage afforded by the referenced insurance policy" (Texas Insurance Code §1811.152). New Jersey's insurance department says the same: certificates should be used "only to provide evidence of insurance" and "cannot be used to amend, expand or alter its terms."

That means two things for you:

• A COI shows coverage on the day it was printed. A policy can be cancelled the next week, and the paper won't change.
• Whatever the certificate says, the policy controls. If the policy excludes the kind of work being done, the certificate can't add it back.

"Certificate holder" vs. "additional insured"

These two terms are easy to confuse:

• Certificate holder just means the certificate was issued to you. According to the Texas Department of Insurance, a certificate holder can't use that box "to imply or confer any new or additional rights beyond what the policy or any executed endorsement of insurance provides." Being listed doesn't give you coverage.
• Additional insured is different. It means the policy itself has an endorsement that extends coverage to you. The Texas Department of Insurance says the "Additional Insured" box should be checked only "if the policy includes an endorsement that names the certificate holder as an additional insured."

For most homeowners, being the certificate holder is enough: it gets you a certificate issued directly to you. On larger projects, some homeowners and businesses ask to be added as an additional insured. If that matters to you, ask the contractor's agent to confirm the endorsement in writing.

How to verify a certificate

1. Ask for the certificate to come from the agent, not as a photo or PDF the contractor forwards. Ask that it name you as certificate holder and show the job address.
2. Check the names and dates. The insured business should match the business on your contract and on the state license. The policy dates should cover your entire project.
3. Contact the insurer directly. The California Department of Insurance advises: "You may contact the insurance company directly to verify information on the COI." Look up the insurer's main phone number yourself, from the company's own website or your state insurance department, rather than using the number printed on the certificate. Give them the policy number, and ask whether the policy is active and covers this type of work.
4. Ask about anything specific. The Texas Department of Insurance notes that a certificate holder "may ask the agent if the policy contains specific language or a specific exclusion, or may request a copy of the policy."
5. Check workers' comp too. If the contractor will have workers on your property, confirm the workers' compensation policy the same way, or confirm with the state that the business is legally exempt.

A warning sign worth taking seriously

Among its red flags for homeowners, the California Department of Insurance lists a contractor who is "unwilling to provide a certificate of insurance from his/her general liability or workers compensation insurance carrier." A legitimate, insured contractor can usually get a certificate from its agent quickly. Delays, excuses or a document that doesn't match the business on the contract are reasons to slow down.

Use the state record as a second check

In several states, the contractor's insurer files proof of coverage with the licensing agency, and the agency suspends the license when coverage ends. That makes the state's record a useful cross-check on the certificate. It can lag a renewal, though; see our guide to what "expired on file" means. On our contractor pages you can see the insurance the state has on file and the date we last checked it.