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A Certificate of Insurance (COI) is a document issued to small business owners as proof of insurance coverage. It is a straightforward form that includes details such as the types of coverage, the issuing insurance company, policy number, names of the insured, policy dates, and limits and deductibles. For general contractors, a COI is essential as they manage projects that may lead to significant losses due to accidents, which could harm their reputation and leave clients with incomplete work. Typically, general liability insurance is obtained to protect both contractors and clients in case of accidents during a project. In most states, proof of liability insurance is necessary for obtaining a general contractor license, though it is not mandated by local governments.
