Need a COI today? Contact our Lake Orion office and we'll issue it →
A certificate of insurance (COI) is a one-page summary, issued by your insurance agent, that proves your business carries the coverage someone is asking you to have. In Michigan it's what a general contractor wants before you set foot on the jobsite, what a landlord wants before handing you keys, and what a client wants before signing. The single most important thing to understand about it: a certificate proves coverage exists — it does not create coverage for the person holding it. That distinction is where most businesses get hurt.
The short answer: A COI is issued on the standard ACORD 25 form and lists your policies, carriers, limits, and effective dates. Its own header states it is "issued as a matter of information only and confers no rights upon the certificate holder" and does not amend or extend the policy. Being named as a certificate holder gives someone proof. Being named as an additional insured gives them actual coverage — and that requires an endorsement to the policy, not a line on the certificate. Your agent issues COIs, usually same day, at no charge.
What's actually on a certificate of insurance
The ACORD 25 "Certificate of Liability Insurance" is the industry-standard form. Nearly every COI you send or receive in Michigan will be one. It shows:
- The producer — your insurance agency, with contact information.
- The insured — your business's exact legal name and address. This must match the name on the contract.
- The insurers — which carrier writes each policy, with NAIC numbers.
- The coverages — general liability, commercial auto, umbrella, and workers' compensation, each with policy numbers, effective and expiration dates, and limits.
- Checkboxes and columns — including whether each policy is occurrence or claims-made, whether additional insured status applies, and the SUBR WVD column indicating a waiver of subrogation.
- The description of operations box — free text describing the job, project, or contract the certificate relates to.
- The certificate holder — the party receiving the certificate.
Certificate holder vs. additional insured — the distinction that matters
This is the part worth reading twice, whether you're the one sending certificates or the one collecting them.
- Certificate holder. Simply the party the certificate is addressed to. It means "we sent you proof." It grants no rights under the policy whatsoever. If they're sued alongside you, being a certificate holder does nothing for them.
- Additional insured. An actual party protected under your policy, added by endorsement — a form attached to the policy itself, such as the standard CG 20 10 for ongoing operations. An additional insured can tender a claim to your carrier and be defended under your policy, within the terms of the endorsement.
Writing "additional insured" in the description box does not make anyone an additional insured. The endorsement has to exist on the policy. When a Michigan general contractor requires additional insured status from a sub, the sub's agent has to add the endorsement, which sometimes carries a premium charge and always requires the carrier to allow it. If you're the GC collecting certificates, ask for a copy of the endorsement, not just the certificate.
The same logic applies to the waiver of subrogation column. An X in the SUBR WVD box is an assertion. The waiver itself is created by an endorsement (commonly CG 24 04). If your contract requires one, request the endorsement.
Who asks for a COI in Michigan, and why
- General contractors, from every subcontractor, before work starts — usually general liability, workers' compensation, and commercial auto, at specified minimum limits, with additional insured status.
- Commercial landlords, before a lease starts and at every renewal, naming the landlord and often the property manager.
- Municipalities and school districts, for permits, contracts, and facility use — Michigan public entities are typically the most demanding on limits and endorsement language.
- Clients and vendors, in professional services contracts, often including professional liability.
- Event venues, for a one-day certificate naming the venue.
How to get a certificate of insurance
You get a COI from your agent, not from a website and not from the certificate holder. The process is simple and should be fast:
- Send your agent the requirement. The best thing you can do is forward the actual insurance requirements section of the contract, not just say "they need a certificate." The contract tells us the required limits, whether additional insured and waiver of subrogation are required, and whether primary and non-contributory language is demanded.
- Give us the exact holder name and address as it should appear. Wrong entity names get certificates rejected and jobs delayed.
- We check your policy against the requirement. This is the step that has value. If the contract requires $2 million and you carry $1 million, we tell you before you sign — not after a claim.
- We issue it, normally the same business day, and email it to you and the holder. There's no charge for a certificate.
If an endorsement is needed, that takes a little longer because the carrier has to add it to the policy — one more reason to send the requirement early rather than the morning the job starts.
Frequently Asked Questions
What is a certificate of insurance?
A certificate of insurance is a standardized one-page document, almost always the ACORD 25 form, issued by an insurance agent to prove that a business carries specific coverages, with specific carriers, limits, and policy dates. It's used to satisfy contract, lease, and permit requirements. Its header explicitly states that it is issued for information only and confers no rights on the certificate holder — it proves coverage, it doesn't provide coverage.
What's the difference between a certificate holder and an additional insured?
A certificate holder is simply the party the certificate was sent to; it grants no rights under the policy. An additional insured is a party actually covered under the policy, added by a specific endorsement such as CG 20 10, and can be defended and indemnified under that policy within the endorsement's terms. Listing someone as a certificate holder does not make them an additional insured, and typing "additional insured" in the description box doesn't either — the endorsement has to be on the policy.
How do I get a certificate of insurance, and how long does it take?
Request it from your insurance agent and include the contract's insurance requirements plus the exact legal name and address of the certificate holder. Most agencies, including ours, issue certificates the same business day during business hours, at no charge. If the contract also requires an additional insured or waiver of subrogation endorsement, allow extra time — the carrier has to add that endorsement to the policy itself.
Does a certificate of insurance cost anything?
No. Agents issue certificates for their clients at no charge as part of servicing the account. What can carry a cost is an endorsement the certificate reflects — adding an additional insured or a waiver of subrogation sometimes generates a premium charge from the carrier, depending on the policy and the number of parties being added.
Can I rely on a subcontractor's certificate of insurance?
Only as a starting point. A certificate reflects coverage as of the date it was issued and can be cancelled the next day — the ACORD 25 makes no promise that the carrier will notify you. If you're relying on a sub's coverage to protect you, collect the actual additional insured endorsement, verify the limits meet your contract, and re-collect certificates at every policy renewal rather than once at the start of a relationship.
The bottom line
A certificate of insurance is a receipt, not a policy. If you're sending them, the thing that matters is that your underlying general liability coverage and endorsements actually meet what you signed. If you're collecting them, the thing that matters is getting the endorsement, not just the certificate. Either way, the review step is where an agent earns their keep — we read the contract's insurance section against your actual policy and tell you where the gaps are. J. Jacobs & Associates issues certificates the same business day for our commercial clients, and we'll check the requirement against your coverage before we send it. If you're a Michigan contractor or business owner who's tired of certificates getting kicked back, send us your requirements and we'll handle it.