Guides / COI glossary
Certificate of Insurance Glossary
Certificates of insurance are full of jargon: additional insured, waiver of subrogation, primary and noncontributory, aggregate limits. Here's what each term means for a contractor or property manager reviewing a sub's or vendor's COI, with links to deeper guides.
A
ACORD 25
The standard certificate of liability insurance form used in the US. It summarizes a policyholder's general liability, auto, umbrella or excess, and workers' compensation coverage on one page. It is evidence of coverage, not the policy itself. Learn more →
ACORD 28
The evidence of commercial property insurance form. Property managers and lenders often see it from commercial tenants and owners to show property coverage, which an ACORD 25 does not cover. Learn more →
Additional insured
A person or company added to someone else's liability policy by endorsement, so they can be covered for claims arising from the named insured's work. A checked box on the certificate is not enough by itself; the policy needs an endorsement that grants the status. Learn more →
Additional insured endorsement
The policy form that actually grants additional insured status, such as ISO CG 20 10 (ongoing operations), CG 20 37 (completed operations), or a blanket endorsement that covers anyone required by written contract. Learn more →
Aggregate limit
The most a policy will pay for all covered claims during the policy period. General liability usually has a general aggregate and a separate products and completed operations aggregate. Learn more →
B
Blanket additional insured
An endorsement that automatically makes anyone the insured agreed in a written contract to cover an additional insured, without naming each one. Check that the contract is signed before the work starts, since most blanket wording depends on it. Learn more →
C
Certificate holder
The person or company the certificate is issued to, shown in the box at the bottom left of an ACORD 25. Being the certificate holder gives no coverage on its own; it mainly means you're the one receiving proof of insurance. Learn more →
Certificate of insurance (COI)
A one-page document, usually issued by the insurance agent or broker, that summarizes a business's policies, limits, and dates at a moment in time. It does not change or extend the policy. Learn more →
Completed operations
Coverage for injury or damage that happens after a contractor's work is finished, such as a leak from a roof months later. Contractors often require subs to keep it in force, and to extend additional insured status to it, for several years after the job. Learn more →
E
Each occurrence limit
The most a general liability policy will pay for a single incident, regardless of how many claims it causes. $1,000,000 per occurrence is a common minimum for small subcontractors. Learn more →
Employer's liability
Part B of a workers' compensation policy. It covers lawsuits by employees over workplace injuries that fall outside the workers' comp system, and appears on the ACORD 25 as three limits: each accident, disease each employee, and disease policy limit.
Excess liability
A policy that sits above underlying policies such as general liability and auto, and follows their terms. It adds limits but, unlike some umbrellas, usually does not broaden coverage. Learn more →
G
General liability (CGL)
Commercial general liability insurance covers bodily injury and property damage to third parties caused by a business's operations, products, or completed work. It is the core coverage on almost every contractor and vendor COI.
I
Insurer (NAIC number)
Each insurance company listed on a certificate carries a NAIC code, a five-digit identifier you can use to confirm the company is real and licensed. Learn more →
N
Named insured
The business that bought the policy, listed in the insured box on the certificate. The name should match the legal name on your subcontract or vendor agreement exactly.
Notice of cancellation
A promise to notify the certificate holder if a policy is cancelled. The standard ACORD 25 only says notice will be delivered in accordance with the policy, so getting real notice usually needs a specific endorsement. Learn more →
P
Per project aggregate
An endorsement that applies a separate general aggregate limit to each project, so claims on one job don't use up the limit available for yours.
Policy period
The effective and expiration dates of each policy, shown in separate columns on the certificate. Each coverage can renew on a different date, so each one needs to be tracked on its own. Learn more →
Primary and noncontributory
Policy wording that makes the sub's insurance pay first for covered claims, without asking your own policy to share the loss. It protects your loss history and limits. Learn more →
Producer
The insurance agent or broker who issued the certificate, listed in the top left box. They are the right contact for corrections, renewals, and endorsement copies.
Products and completed operations aggregate
A separate general liability aggregate limit for claims arising from finished work or products, distinct from the general aggregate. Learn more →
U
Umbrella liability
A policy that adds limits above general liability, auto, and employer's liability, and may also cover some claims the underlying policies don't. Higher-risk trades are often required to carry one. Learn more →
W
Waiver of subrogation
An agreement, added to a policy by endorsement, that the insurer won't pursue you to recover what it paid on a claim caused partly by you. It's commonly required on general liability, auto, and workers' comp. Learn more →
Workers' comp exemption
A state-issued certificate or affidavit showing a business, often a sole proprietor with no employees, isn't required to carry workers' comp. Whether it's acceptable depends on your state, your contract, and your own insurer's audit rules. Learn more →
Workers' compensation
State-required coverage that pays medical bills and lost wages for injured employees. Rules on who must carry it, and who can claim an exemption, vary by state. Learn more →
General information, not insurance or legal advice. Your policies, contracts, broker, and attorney control what applies to you.
Put the terms to work: check a certificate with the free COI compliance checker, or write your requirements with the insurance requirements generator.
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