Top Mistakes in Certificate of Insurance
The most common certificate of insurance mistakes are accepting an outdated certificate, ignoring coverage limits, failing to confirm additional insured status by endorsement, overlooking exclusions, and assuming a COI guarantees coverage. Each one can leave you paying for a loss you assumed someone else's policy would cover.
What are the most common certificate of insurance mistakes?
Here they are at a glance, before we break down why each one matters and how to avoid it:
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Accepting an outdated COI
The policy may have lapsed since it was issued.
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Ignoring coverage limits
Low limits leave you liable for the shortfall.
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Not verifying additional insured status
A line on the COI is not the same as an endorsement.
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Overlooking exclusions
Excluded claims are gaps you may not see coming.
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Assuming a COI guarantees coverage
It is a summary, not a contract.
1. Accepting an outdated COI
Why it's a problem: an expired certificate may mean coverage is no longer in force, exposing you to liability. Example: a property manager relies on a landscaper's year-old COI; if the policy has since lapsed and the crew causes damage, the manager may bear the cost. Fix: always verify the coverage dates and request an updated certificate if it is expired or expiring. See reasons to request a current certificate.
2. Ignoring coverage limits
Why it's a problem: if a claim exceeds the policy limit, you can be responsible for the excess. Example: a venue requires $1,000,000 in liability but a vendor's COI shows $500,000 — any larger incident leaves the venue exposed. Fix: compare the limits on the COI against your contract minimums. More in certificate of insurance vs liability policy.
3. Failing to verify additional insured status
Why it's a problem: if you are not actually an additional insured, you may have no coverage when a claim is filed. Example: a contractor hires a subcontractor whose COI does not endorse the contractor as additional insured — the contractor may be unprotected in a related lawsuit.
Additional insured status is created by an endorsement on the underlying policy, not by the certificate. A note in the additional insured box only reports it. Always confirm the endorsement exists and review any conditions or limitations attached to it.
4. Not reviewing exclusions and limitations
Why it's a problem: excluded claims expose you to liabilities you assumed were covered. Example: a security company's COI covers general liability but excludes "assault and battery" — a fight on the premises would not be covered. Fix: read the Description of Operations section and request the policy if you see concerning exclusions. See what to include in a COI.
5. Assuming a COI is a binding contract
Why it's a problem: a COI is only a summary and offers no guarantees — it will not protect you if the underlying policy has discrepancies, exclusions, or has lapsed. Example: a client assumes a COI means full protection even after the carrier added exclusions. Fix: treat the COI as a summary; review the full policy or consult an insurance professional when the stakes are high. For the bigger picture, see the full certificate of insurance guide.
Essential checklist to avoid COI mistakes
- Named insured matches the legal name on your contract.
- Coverage dates are active for the full project period.
- Limits meet or exceed your contractual or risk requirements.
- Additional insured status is confirmed by endorsement, not just a note.
- Exclusions and limitations are read and understood.
- The COI is treated as a summary — review the full policy when in doubt.
Frequently asked questions
Stay proactive to avoid costly gaps
Avoiding these five mistakes protects your business from financial and legal exposure. Build the checklist into your vendor onboarding so no certificate slips through unchecked.
Review COIs with confidence
Use our full guide and element-by-element checklist to verify every certificate before work begins.
Full COI guide What to include in a COI
ACORD cancellation
Homeowner right to repair for insurance. Questions? Answers.
What is the homeowner’s right to repair?
The homeowner's right to repair refers to the policyholder's option to choose their own contractors to perform repair work on their property following an insurance claim, rather than using contractors selected by the insurance company.
Why would I choose to exercise my right to repair instead of using the insurance company’s contractors?
Exercising your right to repair allows you to have more control over the quality of materials and workmanship, ensures that trusted and reputable contractors handle the repairs, and can often lead to a faster resolution as you are directly involved in managing the project.
What should be included in the request letter to the insurance company?
The request letter should include:
- Your personal and contact information.
- Details of the incident (e.g., date of the fire or flood).
- Your policy number.
- A formal request to exercise your right to repair.
- Information about the chosen contractors, including their credentials and estimates.
- An invitation for the claims adjuster to inspect the property.
How do I choose the right contractors for the repairs?
When selecting contractors, consider their experience with the specific type of damage (e.g., fire or flood), their reputation, licensing and insurance status, references from previous clients, and their ability to provide a detailed estimate and scope of work.
What if the insurance company denies my request to use my own contractors?
If the insurance company denies your request, you should ask for a detailed explanation. It may be helpful to review your policy to understand your rights and, if necessary, seek assistance from a public adjuster or legal counsel to advocate on your behalf.
Can the insurance company impose any conditions on my right to repair?
Yes, the insurance company may impose conditions such as requiring detailed estimates, using licensed and insured contractors, and ensuring that the repairs meet certain standards. It’s important to comply with these conditions to ensure your claim is processed smoothly.
What should I do if the repairs exceed the initial estimates?
Inform your insurance company as soon as you become aware of additional costs. Provide them with updated estimates and an explanation of why the additional expenses are necessary. Most policies will have a procedure for handling cost overruns, but it’s important to get prior approval from the insurer.
Can I be reimbursed for temporary living expenses while repairs are being made?
Yes, if your home is uninhabitable due to the damage, your policy may include additional living expenses (ALE) coverage, which can reimburse you for temporary housing, food, and other necessary expenses while your home is being repaired. Check your policy details and discuss this with your insurance adjuster.
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