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Certificate of Insurance COI
Also called COI, evidence of insurance, ACORD 25.
A one-page summary issued by an insurance broker showing that coverage existed on the day it was printed, carrying an express disclaimer that it grants the holder no rights under the policy.
Drafted with AI assistance. Not yet independently checked. Nobody has verified the claims on this page against a source, so treat the figures and legal points as a starting point rather than as settled, and confirm anything you are about to act on. How we check things.
What it means
Almost every secured financing conditions funding on producing one. The lender names the coverages and limits it requires, you send the request to your broker, and the broker issues a certificate — usually on an ACORD form — listing carrier, policy numbers, effective and expiry dates, coverage types, limits, and the party named in the certificate holder box.
What the certificate is: evidence, prepared by a third party, of a policy it does not amend. What it is not: the policy, the endorsement, or a contract with the insurer. The standard form carries wording to that effect on its face, stating that the certificate confers no rights on the holder and does not alter the coverage.
Where you meet it
- As a closing condition on equipment finance, asset-based lending, commercial real estate and SBA loans
- As a continuing covenant, with fresh certificates due each policy year for the life of the facility
- From your own customers and landlords, and from your subcontractors to you
- At renewal, when a lapse in delivery is itself a breach even if the coverage never lapsed
What a lender actually needs behind it
The certificate names the lender as loss payee, as additional insured, or as mortgagee. Whichever it says, the underlying endorsement has to exist. A careful lender asks for the endorsement pages; a busy one files the certificate and moves on.
Where this one catches people
A certificate is a photograph of a moment. It is accurate the day it is issued and can be worthless a month later if the policy is cancelled for non-payment, if the carrier is changed mid-term, or if the endorsement it describes was never actually added. The certificate holder box does not create the status it names — it records what the broker believes the policy says.
The practical consequence runs both ways. If your funding is conditioned on coverage and your certificate shows the wrong status, the file stalls at the last step and closing slips. If you rely on a subcontractor's or a customer's certificate, you may be relying on a page that describes an endorsement nobody bought. Ask for the endorsement, not the certificate, whenever the money at stake is worth a phone call.
Where you will meet this term
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Certificate of Insurance — common questions
What does certificate of insurance mean?
A one-page summary issued by an insurance broker showing that coverage existed on the day it was printed, carrying an express disclaimer that it grants the holder no rights under the policy.
Where does certificate of insurance catch people out?
A certificate is a photograph of a moment. It is accurate the day it is issued and can be worthless a month later if the policy is cancelled for non-payment, if the carrier is changed mid-term, or if the endorsement it describes was never actually added. The certificate holder box does not create the status it names — it records what the broker believes the policy says.
Is certificate of insurance the same as an interest rate?
Certificate of Insurance is defined above; if you are comparing it against a rate, check whether the two measures share a time dimension before you put them side by side.
Which products does certificate of insurance apply to?
Term Loan, SBA Loan, Equipment Financing, Asset-Based Lending.
Is there a worked example of certificate of insurance?
Not on this entry. Where a term is arithmetic, the arithmetic is shown; this one is not primarily a calculation.
What else should I read alongside certificate of insurance?
Additional Insured, Covenant, Declaration page, Delivery and Acceptance, Insurance requirement.
Has this definition been checked?
Not yet. This entry is drafted and live, and the notice at the top says so. Confirm anything you are about to act on.
Is this legal advice?
No. It is a definition. What a clause does in your contract, in your state, is a question for a lawyer licensed where you are.
Can I suggest a term?
Yes — [email protected]. The glossary grows from what people are actually shown in contracts.