Certificate of insurance (COI)
What is a certificate of insurance requirement in a contract?
The certificate itself is a one-page proof from the insurer: policy types, coverage amounts, dates. Contracts commonly require general liability, professional liability (errors and omissions), cyber, and workers' compensation, at stated minimums.
For a buyer, this is the clause that means something is actually behind an indemnity — a promise to cover losses is only as good as the balance sheet or policy standing behind it. For a provider, it is a recurring obligation that is genuinely easy to miss: the policy renews annually, the certificate expires with it, and nobody remembers to send the new one until the customer's accounts-payable system flags it.
Check that the required amounts are proportionate to the actual work, that additional-insured status is requested where it matters, and note the delivery deadline — it is usually a condition of starting work or of getting paid.
"Supplier shall maintain commercial general liability coverage of not less than $2,000,000 per occurrence and shall furnish a certificate naming Company as additional insured prior to commencing work."
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Definitions and negotiation guidance here are educational business decision support, not legal advice. Consult an attorney about how any clause applies to your own agreement.