Texas Contractor Resources

Certificate of Insurance — When Do You Need One?

A COI is often the only thing standing between you and a signed contract. Here’s what it is and when you need it.

A Certificate of Insurance (COI) is a one-page document that proves you have active coverage. It doesn’t grant rights under the policy — it just confirms the policy exists. Most GCs, property owners, and municipalities require one before any work begins.

What a COI Proves

A standard ACORD 25 certificate shows your carrier name, policy number, coverage types, limits, and expiration date. It tells whoever is asking: yes, this contractor has insurance, here are the details.

It does not transfer coverage. It does not make the certificate holder a beneficiary. It is a snapshot of your policy at a point in time.

When You’ll Be Asked for One

  • Before starting a job — GCs and property owners almost always require a COI before work begins
  • Permit applications — many Texas municipalities require proof of GL and/or WC
  • Bidding contracts — some bids won’t even be reviewed without a COI attached
  • Vendor or subcontractor registration — large companies require COIs on file for all subs
  • Equipment rentals — rental companies often require GL proof before releasing equipment
  • Events or temporary job sites — venues and event organizers frequently require short-term GL with a COI

Additional Insured Requests

Sometimes a certificate holder will ask to be named as an Additional Insured (AI) on your policy. This is different from just receiving a COI — it actually extends limited coverage to them under your policy for your operations.

Most GL policies allow AI endorsements. Expect to provide an AI certificate when:

  • A GC requires it as a condition of the subcontract
  • A property owner wants protection if your work causes a claim
  • A municipality requires it for permitted work
Note: Adding an Additional Insured does not reduce your own coverage. It extends a portion of your policy to cover the AI for claims arising from your work — not their own negligence.

How Fast Can You Get One?

With most online carriers (NEXT, Thimble), a COI is available immediately after binding — same day, sometimes within minutes. You can download it directly from your account portal and send it to whoever is asking.

With traditional carriers, your agent typically issues the COI within a few hours to one business day.

Thimble tip: If you need a COI for a single job or event and don’t have an annual policy, Thimble lets you buy short-term GL and get a COI on the spot — no annual commitment required.

What to Check Before You Send It

  • Policy is active — expiration date hasn’t passed
  • Coverage type matches what was requested (GL, WC, Auto, etc.)
  • Limits meet the contract minimum (commonly $1M/$2M for GL)
  • Certificate holder name and address are correct
  • Additional Insured endorsement is attached if required

Need a COI fast?

Check your eligibility for same-day online binding through NEXT or Thimble — or talk to a specialist for broader options.

Check Online Quote EligibilityCall 210-640-7050