How to Read a Certificate of Insurance (And Why Most People Get It Wrong)

Anne Grubish from Kraus-Anderson has one piece of advice she repeats to everyone: "I cannot stress this enough to people who are not knowledgeable about insurance—just understand that a COI doesn't automatically give you any kind of rights or coverages or anything like that."

That Certificate of Insurance you're holding? It's informational. It's a snapshot in time. It's not a contract. And treating it like one could cost you millions.

 

What a COI Actually Is

A certificate is simply evidence that insurance existed at the moment the certificate was issued. It doesn't mean the policy hasn't been cancelled. It doesn't mean the coverage applies to your specific situation. It doesn't mean the additional insured language actually protects you.

The certificate itself grants no rights. Only the underlying policy documents do—and most people never see those. TrustLayer's guide to reading a COI covers the fundamentals every risk manager should know.

 

The Critical Elements to Check

• Named insured matches the contracting entity
• Policy effective dates cover your project timeline
• Coverage limits meet your requirements
• Additional insured status is actually listed (and the underlying endorsement supports it)
• The certificate holder section shows your company properly
• Any exclusions or limitations noted in the description

Automated COI verification matters—catching these details manually at scale is nearly impossible.

 

The Additional Insured Trap

The most common mistake: assuming "additional insured" on a certificate means you're protected. The certificate can say additional insured all day long—but if the underlying endorsement has specific language that doesn't apply to your contract, you're not actually covered. Understanding endorsements and the 8 clauses that derail compliance is essential.

Anne's approach: "As a risk manager, I look at what the subcontractor is doing for a living. Are they bringing in window treatments? What is the probability of a large loss based on that? It's probably small. But foundation work? I'm scrutinizing every detail."

 

The Bottom Line

Certificates are starting points, not finish lines. They tell you what to look for—not that you're protected. Never assume a piece of paper provides the coverage its existence implies.