A commercial client asks your company for a Certificate of Insurance (COI) before work can begin. You have a crew ready, a contract to sign, and a deadline approaching. What exactly is this document, and how do you get one?
For contractors, cleaning companies, property-service businesses, vendors, and other small businesses in Katy, Houston, and across Texas, a COI is a common part of doing business. It helps a customer or project manager confirm that certain insurance policies have been issued. But there is an important distinction: a certificate describes insurance; it is not the insurance policy itself.
This guide explains what a Texas COI shows, how to request it, and what to review before submitting it.
What Is a Certificate of Insurance (COI)?
A COI is a document issued by an authorized insurer or insurance agent that provides an overview of specified coverage. For business liability insurance, one commonly used format is the ACORD 25 Certificate of Liability Insurance. It identifies the insured business, insurer, policy dates, coverage types, and stated limits.
For example, a Houston general contractor may ask your flooring company for a COI showing liability coverage before allowing work on a job site.
Important Texas distinction: A COI confirms information about the referenced policy. Under Texas Insurance Code Chapter 1811, it does not change coverage, extend a policy, or automatically give a certificate holder additional rights. The actual policy and endorsements determine those rights.
Why Do Texas Businesses Need a COI?
There is no single rule that requires every Texas small business to carry a COI. In practice, the document is often requested because a client, property owner, general contractor, or purchasing department has insurance requirements in a contract.
Contractors and Subcontractors
General contractors commonly ask electricians, painters, roofers, landscapers, and other subcontractors to demonstrate insurance before beginning work. Depending on the job, the request may mention general liability, commercial auto, or workers' compensation coverage. The requirements must be reviewed against the actual policy.
Commercial Leases and Property Managers
A business leasing office or retail space may be asked to provide proof of liability insurance before receiving the keys. Property managers can also request updated certificates when a policy renews. If the lease calls for the landlord to be an additional insured, that is a separate coverage question that should be reviewed with the agent.
Service Vendors and Business Contracts
Cleaning crews, maintenance providers, event vendors, and companies working at commercial locations can encounter COI requests during vendor onboarding. Providing accurate documentation helps the hiring company evaluate whether your business meets its stated insurance requirements.
What Information Does a COI Include?
The exact form varies, but a business liability certificate commonly includes:
- Named Insured and Insurance Producer
The business shown on the policy, along with the agency or producer who can answer questions about the certificate.
- Insurers and Policy Details
Insurance company names, policy numbers, types of coverage, and effective and expiration dates.
- Coverage Limits
Limits applicable to the listed coverage, such as general liability per occurrence and aggregate limits, when shown.
- Certificate Holder
The person or organization receiving the certificate. Being listed as the holder does not by itself make that party an additional insured.
Some forms also include a section for operations or locations. Only information consistent with the policy and an approved form may be entered. A COI should never be edited to promise coverage that does not exist.
How to Get a Certificate of Insurance in Texas
If your business already has a policy, you generally request a certificate through your insurance agency or carrier. If you do not have the required coverage, you will need to discuss purchasing appropriate insurance first.
- Step 1 — Collect the Requester's Requirements
Ask for the certificate holder's legal name and address, the requested insurance types and limits, and any contract language about additional insured status or waivers.
- Step 2 — Contact Your Insurance Agent
Send the request and identify the contract or project. Your agent can compare the requirements with your existing policies and explain what can accurately be documented.
- Step 3 — Resolve Missing Coverage or Endorsements
If your client requires higher limits or a specific endorsement, the agent may need insurer approval, a policy change, or an additional premium. The certificate alone cannot make that change.
- Step 4 — Review and Deliver the Certificate
Check the insured name, policy dates, limits, holder information, and project details before submitting the document to your customer.
At Loyal Services LLC, we help businesses review commercial insurance options and COI requests. The company's Commercial Insurance page provides details about coverage for Texas businesses. Certificate timing depends on the policy and the insurer's processing requirements.
Need a COI for an upcoming Texas project?
Share your client's insurance requirements with our bilingual team. We can help review your commercial coverage and guide you through the next steps for a certificate request.
Does a COI Provide or Change Insurance Coverage?
No. A COI is evidence of policy information, not a replacement for the policy. A certificate cannot add a new type of protection, raise a limit, erase an exclusion, or extend an expired policy. Those changes, when available, must be made through the insurer and reflected in the policy or its endorsements.
This distinction is especially important when a contract requests additional insured status or a waiver of subrogation. Listing a company as the certificate holder does not necessarily satisfy either condition. The Texas Department of Insurance explains that certificate wording must accurately reflect the coverage and endorsements actually in force.
Certificate Holder vs. Additional Insured
A certificate holder is simply the party named to receive the document. An additional insured may have specified protection under a policy only when the policy language or a valid endorsement provides it. These terms are not interchangeable.
For example, a property manager could ask to be listed as the holder so it can keep proof of insurance on file. A separate lease clause might require additional insured status. Your agent should review the policy and any applicable endorsement before you represent that the requirement has been met.
General Liability Insurance vs. a COI
General Liability Insurance is an insurance policy that may respond to covered third-party bodily injury, property damage, and certain personal or advertising injury claims, subject to its terms. A COI is the document that summarizes specified policy information for someone asking for proof.
Insurance is the protection; the COI is documentation. To better understand covered risks, see: General Liability Insurance in Texas: What It Covers and What It Doesn't.
How Much Does a Certificate of Insurance Cost in Texas?
For an existing policy, agencies and insurers often issue routine COIs without a separate certificate charge. However, there is no universal fee schedule. If a customer requests coverage your business does not have, higher limits, or an additional insured endorsement, the insurer may charge for the policy or endorsement changes.
The cost of coverage is different from the cost of proof of coverage. Confirm any charges with your agent.
COI Checklist Before You Send It
- Make sure the insured business name matches your actual policy and contracting entity.
- Confirm the certificate holder's name and address are correct.
- Review policy effective dates and expiration dates.
- Compare the listed insurance types and limits with your client's request.
- Ask your agent to verify any additional insured or waiver requirements.
- Request an updated certificate if the applicable policy changes or renews.
Frequently Asked Questions About COIs in Texas
- Is a Certificate of Insurance mandatory in Texas?
Not for every business. A COI is commonly required by contracts, leases, and vendor onboarding processes. Particular industries or agreements may have specific proof-of-insurance requirements.
- How long does it take to get a COI?
A straightforward request for an existing policy may be handled quickly, sometimes the same day. Additional endorsements, insurer approval, or missing coverage can take longer.
- Can I get a COI without an insurance policy?
A legitimate certificate must reflect a policy that has been issued or coverage that has been bound. If you do not have the requested insurance, speak with an agent about coverage first.
- Does naming a client as certificate holder make them an additional insured?
No. Additional insured rights depend on the insurance policy and any applicable endorsement, not solely on the name entered in the certificate holder box.
Get Help With Your Certificate of Insurance in Texas
If a customer, general contractor, or commercial landlord has asked your business for a COI, collect their exact requirements before you rush to submit paperwork. Loyal Services LLC in Katy, Texas can help review your insurance needs and discuss commercial coverage options for your business.
Start with our Commercial Insurance services, or contact the team through the options below. For official guidance on what Texas certificates can and cannot do, see the Texas Department of Insurance and Texas Insurance Code, Chapter 1811.