A certificate of insurance (COI) is a document issued by the insurance carrier insuring your business. They are typically one page documents and provide a quick summary of the coverages supplied by your insurance policy. From time to time, your customers may request a COI to verify that your business is indeed insured.

Businesses with high risk or potential for liability are more likely to be asked for proof of insurance than others. For example, you may be asked for a COI if you install computers and have access to your customer’s network. You may also be asked to provide proof of insurance if you install signs, windows, or other miscellaneous services that have a high liability exposure.

Generally, businesses supply COI’s when asked but they can be used for prospecting too. You may find that your customers prefer businesses who are insured versus those who are not. Rather than showing clients your entire insurance policy, attach a COI to your quote or other introductory documents. Making sure to let every client know your business is insured will provide the peace of mind they are looking for and compel them to choose you over the competition.