If you work with contractors, vendors, or third‑party service providers, you’ve likely encountered the terms Certificate of Insurance (COI) and endorsement. While they may seem similar, they serve very different purposes—and understanding those differences is essential to protecting your business from unnecessary risk.
Here’s an important question: Do you know if a COI is enough, or should you request an endorsement? This blog breaks down the key differences, explains why each matters, and offers practical steps to help you make confident decisions.
What Is a Certificate of Insurance (COI)?
A Certificate of Insurance is a summary document issued by an insurer that verifies a business or individual has active coverage. It does not change the policy—it simply confirms what exists.
Typically, a COI includes:
- Policyholder’s name
- Coverage types (general liability, workers’ comp, auto, etc.)
- Policy limits and effective dates
- Insurer’s contact details
Why it matters: Requesting a COI before hiring a third party helps ensure they have the required coverage in place, reducing potential liability for your business.
What Is an Endorsement?
An endorsement, sometimes called a rider, is an official modification to an existing insurance policy. It adds, removes, or changes coverage terms depending on what is needed.
Common endorsements include:
- Increasing policy limits
- Adding an additional insured (such as your business)
- Expanding coverage to include new or specific risks
Why it matters: Endorsements provide assurance that the policy has been updated to include the protections your business specifically requires—something a COI alone cannot guarantee.
Key Differences
A COI provides proof of insurance but does not alter the insurance policy in any way. An endorsement legally modifies the policy and ensures the coverage reflects the agreed‑upon terms.
Best Practices for Employers
To protect your business when working with outside parties, consider these steps:
- Always request a COI before beginning any project or service relationship.
- Review the COI closely, paying attention to policy limits and expiration dates.
- If additional or specific coverage is required, request an endorsement to ensure it is legally included in the policy.
Understanding the purpose of COIs and endorsements is essential for managing risk in business contracts. A COI confirms coverage exists, while an endorsement ensures that coverage meets your exact needs.
Before hiring contractors or vendors, review your insurance requirements carefully and consult a qualified insurance professional if you need guidance.
