Certificate of Insurance

What is a Certificate of Insurance – COI in Trucking?

A Certificate of Insurance (COI) is a document that provides a snapshot of a company’s insurance policies at a given time. This document is issued by your insurer and serves as proof of your insurance coverage.
It details important information, such as the type of coverage, policy limits, policy numbers, effective dates, and the names of the insured and insurer.
However, it’s crucial to note that the COI is purely informational and does not alter, extend, or amend the coverage provided by the policies it represents.
It tells clients that your company has insurance coverage to protect against claims involving property damage, personal injury, or other types of harm.

In the trucking industry, the COI often covers different types of insurance, including but not limited to:

• Auto Liability Insurance: Covers damages to other persons or property if the trucker is at fault in an accident.
• Cargo Insurance: Protects the goods being transported in the event of damage or loss.
• Workers’ Compensation Insurance: Covers medical expenses and lost wages if an employee gets injured on the job.
• General Liability Insurance: Provides coverage for a broad range of risks, such as injuries or damages occurring on business premises.

How to Obtain a Certificate of Liability Insurance

To obtain a certificate of liability insurance, you typically need to contact your insurance provider. You can request it directly from your insurance agent or company, often through a phone call, email, or through their online service portal. The process is generally straightforward, and your insurer will provide you with the certificate, which you can then present to clients, contractors, or as required for business operations.

Why is a Certificate of Insurance Important?

Verification of Coverage: The COI serves as proof that a trucking company has the necessary insurance coverage in place. This is particularly important when bidding for contracts, as clients often require proof of certain types and levels of insurance.

Risk Management: By requesting a COI from subcontractors or partners, trucking companies can ensure these entities have appropriate insurance, thus mitigating potential financial risks.

Compliance: The COI helps trucking companies demonstrate compliance with legal and contractual insurance requirements.
Learn about Compliance here.

Understanding a Certificate of Insurance

While a COI layout can vary, it usually includes the following key sections:

• Insured: This section lists the name and address of the policyholder.
• Insurer(s) Affording Coverage: This is where you’ll find the names of the insurance company or companies providing the coverage.
• Coverages: This section outlines the types of policies the insured has, including the policy numbers and the policy effective and expiration dates.
• Limits: This portion indicates the maximum amount the insurance company will pay for a single claim or for all claims during the policy period.

A Certificate of Insurance is a vital document in the trucking industry. It provides proof of insurance, assists in managing risks, and helps maintain compliance with laws and contracts. Understanding how to read a COI and knowing what it represents can contribute to more informed decision-making, improved risk management, and smoother business operations. For trucking companies, the COI is more than just a piece of paper; it’s a testament to their commitment to running a secure and responsible business.
Learn more about Insurance here.
Learn about W-9 form here.

Learn about Void Check here.

External Links

How to Read a Certificate of Insurance – article by Embroker – click here.

Updated in 2024.