TL;DR
A Certificate of Insurance (COI) proves a vendors insurance coverage. Property managers should require COIs from all vendors, verify coverage meets requirements, and track expirations to maintain compliance.
Quick Answer
A Certificate of Insurance is an official document proving a company has valid insurance coverage. It lists the types of coverage, policy limits, and effective dates.
Introduction
A Certificate of Insurance (COI) is a document issued by an insurance company that provides proof of insurance coverage. For property managers, understanding COIs is essential for managing risk and ensuring vendor compliance.
Why Property Managers Need COIs
Property managers work with numerous vendors, contractors, and service providers. Each of these third parties needs to demonstrate adequate insurance coverage to protect against:
- Liability claims from accidents on your property
- Property damage during service work
- Workers compensation for injured workers
Key Components of a COI
Every COI includes several important pieces of information:
- Policy holder information - Who is insured
- Insurance company details - The carrier providing coverage
- Policy numbers - Unique identifiers for each policy
- Coverage limits - Maximum amounts payable per incident
- Effective dates - When coverage begins and ends
- Additional insured status - Whether you are listed as additional insured
Common Coverage Types
General Liability
Protects against bodily injury and property damage claims. Most property managers require at least $1,000,000 per occurrence.
Auto Liability
Covers accidents involving the vendors vehicles while on your property or conducting work.
Workers Compensation
Provides coverage for employees injured on the job. This protects you from liability if a contractor worker is hurt.
Umbrella Coverage
Provides additional protection beyond primary policy limits.
Best Practices for COI Management
- Set clear requirements before engaging vendors
- Verify coverage matches your minimum requirements
- Track expiration dates and request renewals proactively
- Confirm additional insured status for maximum protection
- Use automated tools like COI Tracker to streamline the process
Conclusion
Effective COI management is crucial for protecting your properties and business. With the right processes and tools, you can ensure continuous compliance and minimize risk.