In Practice
A COI is the proof that a vendor is insured. Before a plumber, roofer, landscaper or any contractor works on the property, you ask for the certificate. It shows the insurer, the policy limits and the dates of coverage, so you know the vendor can cover damage or an injury on your site.
The community manager or the maintenance supervisor collects them, and the regional or asset manager audits them. Your management agreement and the owner's insurance program usually set the required limits and call for the property to be named as an additional insured. Keep every COI on file and tracked by expiration date.
Example: a vendor's policy lapses in March, and no one notices. In April a worker is hurt on site. Without current coverage, the exposure can land on the owner and the management company. A simple vendor log with expiration dates and a monthly check prevents that.
Common mistake: accepting a certificate without reading it. Check the dates, the limits, the type of coverage and that the right parties are listed. When in doubt, ask your insurance contact or counsel. Never let work start before a current certificate is in hand.
Certificate of Insurance: Common Questions
Why do apartment communities require a COI from vendors?
It shows the vendor has insurance to cover damage or injury during the job, which protects the owner, the management company and residents.
What should you check on a COI?
The vendor's name, the policy dates, the coverage types and limits, and whether the required parties are named as additional insureds.
