Certificate of Insurance vs. Endorsements: What Employers Should Know

Certificate of Insurance vs. Endorsements: What You Need to Know

 

If you're a contractor, property owner, or work regularly with vendors or subcontractors, you've probably dealt with insurance paperwork. Among the most common - and most misunderstood - documents are Certificates of Insurance (COIs) and endorsements.

 

They both matter. But they do very different things. Knowing the difference can help you avoid major headaches down the road.

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What Is a Certificate of Insurance (COI)?

 

A COI is a snapshot - a standardized summary issued by an insurance carrier that shows someone has active insurance. It typically lists:

 

• Policyholder name
• Types of coverage (like general liability or workers’ comp)
• Policy limits and dates
• Contact info for the insurer

 

It’s helpful for verifying that a contractor or vendor has coverage in place. But - and this is key - a COI doesn’t change the terms of the policy. It doesn’t legally grant you coverage. It’s not a contract.

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What Is an Endorsement?

 

An endorsement(also known as a rider) is a binding change to an insurance policy. It’s what actually adjusts the terms of the coverage - adding, removing, or modifying protections.

 

Common endorsements include:

 

• Adding an Additional Insured(your business)
• Waiver of Subrogation
• Increasing coverage limits
• Tailoring coverage for a specific job or contract

 

If your agreement requires your business to be included on someone else's policy, an endorsement is what makes that happen—not the COI.

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Can You Rely on a COI to Confirm Endorsements?

 

Not fully.

 

A COI might list endorsements, but it’s not a legal proof that those endorsements are active or correctly worded. For example, the difference between a blanket additional insured endorsement and a project-specific one could be the difference between being covered - or not - when something goes wrong. A blanket additional insured endorsement automatically extends coverage to any party required by contract, while a project-specific endorsement applies only to a specific job or agreement.

 

That’s why it’s smart business to ask for a copy of the actual endorsement. It’s the only way to confirm the details, including exact language and scope.

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COI vs. Endorsement: Key Differences

 

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Best Practices to Protect Your Business

 

Whether you're hiring subcontractors or leasing space, here’s what to do:

 

1. Always get a COI before work starts - it’s your baseline check.
2. Review it closely - confirm policy types, limits, and dates.
3. If you need to be covered under someone else's policy, request and review the actual endorsement. This confirms the details and ensures you’re protected.
4. Keep detailed records of all COIs and endorsements. These documents are critical for demonstrating compliance during audits or resolving disputes. Organized records can save time and protect your business if questions about coverage arise later.

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Final Thoughts

 

COIs and endorsements both play an important role - but they’re not interchangeable. A COI shows coverage exists. An endorsement shows you’re covered.

 

At Pelican Shield, we help contractors, property owners, and growing businesses avoid insurance blind spots. Want help reviewing a COI or making sure your endorsements are up to par? Let’s talk.

 

We do what we say - and we make sure your coverage does, too.