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Which Vendors Need a Certificate of Insurance? A Practical Rule of Thumb

By SubCover HQ · Updated Nov 2, 2026 · 3 min read

Once you start collecting certificates of insurance, the next question comes fast: do we really need one from everyone? The plumber, sure. But the courier? The software company? The one-time carpet cleaner?

Requiring a COI from every vendor wastes time and annoys low-risk suppliers. Requiring them from too few leaves real exposure. Here's a practical way to draw the line.

The rule of thumb: physical presence or physical work

A vendor generally needs to give you a certificate if they will do any of the following:

• Perform work on your job site or property, even for an hour.
• Bring people onto the site: crews, technicians, guards, cleaners, movers.
• Use vehicles or equipment on the property or for your work.
• Handle tenants, residents, or the public on your behalf.
• Give professional advice you rely on, such as design, engineering, or inspections.

Vendors who only ship products, provide remote software, or deliver mail generally carry lower premises risk. Many companies skip the COI for them, or ask only for basic general liability if they make deliveries on site.

A three-tier approach

Tier 1: High risk

Roofers, electricians, excavation, demolition, tree work, elevator service, security, and anyone working at height, with heavy equipment, or with fire or chemicals. Require full general liability, auto, workers' comp, umbrella, additional insured, waiver of subrogation, and primary and noncontributory wording. See our COI requirements by trade.

Tier 2: Standard risk

Painters, landscapers, janitorial, pest control, HVAC maintenance, and most routine service vendors. Require general liability, auto, workers' comp, and additional insured, usually with lower or no umbrella requirements.

Tier 3: Low risk

Occasional on-site visitors like delivery drivers, consultants who visit briefly, or vendors who only drop off supplies. A basic general liability certificate is often enough, or none at all, depending on your contracts and insurer.

Don't forget these

• Sole proprietors and 1099 workers. "It's just one guy" is how uninsured work ends up on your audit. See do 1099 subcontractors need insurance.
• Sub-subcontractors. Your contract should require your subs to collect certificates from their own subs.
• One-time and emergency vendors. They're the most likely to slip through. See COIs for one-time jobs and short-term vendors.
• Tenants in commercial properties. See commercial tenant COI requirements.

Check with your own insurer

Your general liability insurer may audit your subcontractor certificates at renewal and charge additional premium for uninsured subs. Ask your agent what your carrier expects so your vendor tiers match your own policy.

Write it down once

Put your tiers in writing and apply them the same way every time. Our free insurance requirements generator drafts the requirements language, and if you manage properties, see vendor COI requirements by property type.

Then let someone else do the collecting

Once you know who needs a certificate, SubCover HQ handles the rest: requesting from agents, checking every certificate against the right tier, tracking expirations, and chasing what's missing, for $99/month.

Frequently asked questions

Do all vendors need a certificate of insurance?

Not necessarily. A common rule is to require one from any vendor who performs work on your property, brings people or vehicles on site, or gives professional advice you rely on.

Do delivery drivers need a COI?

Many companies skip the certificate for simple deliveries or ask only for basic general liability. Your contracts and insurer decide.

Do sole proprietors need to provide a COI?

Usually yes, if they work on your site. Uninsured sole proprietors can create exposure and may increase your own insurance premium at audit.

How should I decide what to require from each vendor?

Group vendors into risk tiers by the work they do, set requirements for each tier in writing, and apply them consistently.

This guide is general information, not insurance or legal advice. Your contracts, insurance professional, and attorney determine what you should require.