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A Certificate of Insurance (COI) is issued to small business owners as proof of insurance. It is a form from an insurance company or broker that details coverage types, the issuing company, policy number, insured names, policy dates, and plan limits and deductibles. For general contractors, having a COI is crucial, as it protects against potential costly accidents that could harm both their reputation and leave clients with unfinished projects. Typically, contractors obtain general liability insurance for this protection. Moreover, in most states, presenting proof of liability insurance is necessary to obtain a general contractor license, although local governments may not impose this requirement.
