How to Request COI from Vendors: Complete Guide 2025

Many businesses lose money on 3rd party related claims because they request certificates of insurance incorrectly or forget to track renewals that leave them exposed when accidents happen. Requesting a certificate of insurance from vendors and contractors protects your business from liability claims and prevents work stoppages that can cost thousands, as well as delays when coverage problems arise mid-project.

This guide shows you exactly how to request certificates of insurance that protect your business and how to verify that submitted COIs provide real protection. CertFocus by Vertikal RMS is a COI tracking software that automatically requests COIs from vendors and monitors renewals with minimal input from your staff.

What is a Certificate of Insurance for Vendors and Why Do You Need One?

A certificate of insurance for vendors is a document that serves as evidence that your contractors, suppliers, and service providers have active insurance coverage that meets your requirements before they start work on your property or projects. This one-page document summarizes key points like:

• Coverage types
• Limits
• Effective dates
• Additional insured parties

COIs serve as evidence that insurance coverage exists, but they’re not insurance policies themselves and don’t guarantee coverage will respond to claims. They’re like receipts that serve as evidence that a subcontractor or vendor bought insurance.

The main purpose of requiring a vendor COI is to shift liability for accidents and damages from your business to the vendor’s insurance company. When your cleaning company accidentally damages expensive equipment or your contractor’s employee gets injured on your property, their insurance should handle the claims instead of your business paying out of pocket. This protection is especially important when you consider that 2.6 million workplace injuries happen every year, with the average workplace injury with medical consultations costing $43,000.

Almost every contract and project now requires vendors to have insurance with specific coverage amounts and endorsements, so collecting COIs isn’t optional anymore. Government jobs, commercial leases, and big construction projects all demand proof of insurance before vendors can start work, and missing this documentation can kill contracts or stop projects completely.

You need vendor COIs because uninsured mistakes can bankrupt your business through liability claims and property damage that costs hundreds of thousands or even millions. A single fatal workplace injury costs $1,460,000 on average, so verifying that your vendors have the right insurance protects you from these disasters that can destroy unprepared companies.

When Should You Request a COI from Vendors?

You should request certificates of insurance before vendors start any work and whenever policies expire to avoid coverage gaps that could make your company liable for their mistakes. Don’t wait until after work begins because accidents can happen from day one, and you might have to foot the bill if your vendor doesn’t have insurance.

This is when you should request COIs from your vendors:

• Before any vendor starts to work on your property: Get certificates during setup and make sure coverage is active before letting anyone start work that could hurt people or damage property.
• During contractor selection: Check insurance coverage when evaluating vendors so you can eliminate uninsured bidders and verify that winners can meet your requirements.
• For dangerous work requiring special coverage: Get extra certificates for risky jobs like roofing or demolition that need specialized insurance beyond basic liability.
• When policies expire: Track renewal dates and get updated certificates before old ones expire so you don’t have gaps where vendors work without coverage.
• When the scope of the work changes: Require new certificates if vendors take on bigger or riskier jobs that would justify higher coverage limits.
• After major accidents: Verify coverage is still active after workers’ comp claims or liability incidents that might cause insurance companies to cancel policies.

Step-by-Step Guide: How to Request a Certificate of Insurance from Vendors

Getting COIs from vendors shouldn’t be too complicated, but most businesses make it harder than necessary by sending vague requests or forgetting to follow up. This systematic approach to requesting a certificate of insurance from vendors will help you gather clear documentation trails that protect your business and satisfy compliance requirements.

Step 1 – Determine Your Insurance Requirements Before Making Requests

Start by determining the coverage you need based on the work being performed and the associated risks. A landscaping contractor needs different insurance than an electrical contractor working inside your building, so tailor requirements to match real exposure rather than using generic templates that might miss important coverage or demand unnecessary protection.

Set coverage limits based on realistic damage scenarios, not random numbers. If a vendor mistake could cost you $200,000 in property damage and lost business, then requiring $500,000 or $1 million in liability coverage makes sense. Check what’s normal in your industry, but adjust for your risk exposure.

You also need to figure out which endorsements you need for protection. Additional insured status puts you on their policy, so their insurance covers claims involving their work for you. A waiver of subrogation stops their insurance company from suing you later for reimbursement. Don’t ask for endorsements you don’t understand or need.

Step 2 – Write a Clear COI Request That Gets Results

Your request needs to spell out exactly what you want and when you need it. This makes it easy for vendors to comply and know what will happen if they don’t.

Always include these parts in your COI request letter:

• Professional opening: Explain the project, timeline, and why you need their insurance documentation so vendors understand this isn’t just bureaucratic paperwork.
• Specific requirements: List exactly what coverage types you require, minimum dollar limits, and any special endorsements. Be specific.
• Clear deadline: Give them a specific date when you need the certificate and explain what happens if they’re late, like work stoppage or payment holds.
• Contact information: Provide phone numbers and a live chat option where they can ask questions. Provide the ability for vendors and their insurance provider to easily upload certificates and endorsements.

Step 3 – Send and Track Your Request Systematically

Email your request and keep a history of all notifications sent. Keep records of every vendor phone conversation with dates and responses so you can prove you gave them fair warnings if problems develop later.

Follow up within a week if you don’t hear back. Use a simple tracking system to monitor who’s submitted certificates, whose policies are expiring soon, and who needs another nudge to get their paperwork in order.

Step 4 – Review and Verify Received COIs for Compliance

Don’t just file certificates without reading them. Check to make sure that coverage types and dollar amounts meet or exceed the minimum limits required, verify that the dates cover your project timeline, and confirm that your business is listed correctly as the certificate holder.

Look for common mistakes like missing additional endorsements, inadequate coverage limits, or outdated policy information that doesn’t reflect current coverage. Call the insurance company directly if something looks wrong or if you’re dealing with expensive projects where mistakes could cost serious money. This extra step helps you catch cancelled policies and coverage problems that certificates don’t always show.

What Should I Include in a COI Request Letter to Contractors?

Your COI letter should include specific insurance types, minimum coverage limits, required endorsements, your company information as a certificate holder, submission deadlines, and consequences for non-compliance to confirm that contractors provide certificates that really protect your business. Here’s how to write the perfect COI request letter.

Essential Components Every COI Request Must Include

Every COI request should contain specific details about required coverage types, minimum limits, necessary endorsements, and administrative requirements. These are the most common elements that you must cover in your COI request letter:

Sample COI Request Email Template

Here’s an example of what a COI request email looks like:

Subject: Certificate of Insurance Required – [Project Name/Contract Number]

Dear [Contractor Name],

We require proof of insurance before you can begin work on [project description] scheduled to start 2025. Please provide a certificate of insurance that includes:

Required Coverage:

• General Liability: $1,000,000 per occurrence, $2,000,000 aggregate
• Workers’ Compensation: Statutory limits
• Commercial Auto: $1,000,000 combined single limit (if vehicles used)

Required Endorsements:

• [Your Company Name] must be added as an additional insured
• Waiver of subrogation in favor of [Your Company Name]
• Primary and noncontributory language

Certificate Holder: [Your full legal business name and address]

Please submit the certificate to [email address] by [specific date]. Work cannot begin without proper insurance verification. Contact [name] at [phone/email] with questions.

Thank you,
[Your name and title]

What Insurance Coverage Should You Require from Different Types of Vendors?

Insurance requirements should match the real risks each vendor creates for your business, with high-risk contractors needing comprehensive coverage while low-risk service providers can work with basic protection. Some of the common vendor insurance requirements by industry are:

• Construction contractors: $1-2 million general liability, workers’ comp, commercial auto, and professional liability
• Office service providers: $1 million general liability, errors and omissions for IT or professional services
• Manufacturing vendors: Product liability, general liability, and pollution coverage for hazardous materials
• Transportation companies: Higher auto limits, cargo insurance, general liability
• Healthcare vendors: Professional liability, cyber liability for patient data, general liability
• Food service providers: Product liability, general liability, and liquor liability if serving alcohol

How Long Do COIs Last and What Happens When They Expire?

Most COIs last one year and need to be renewed before they expire, usually when the vendor’s insurance policies renew each year. The certificate shows coverage expiration dates that tell you when you need new paperwork from your vendors.

Some projects need more frequent updates because waiting a full year between certificates creates too much risk. For example, a construction job that lasts 18 months or complex projects with changing requirements might benefit from quarterly updates to catch any coverage changes that may happen. This is even more important for high-risk work where insurance companies might cancel or change policies mid-term due to claims or safety violations.

If a COI expires without replacement, you may have to stop work immediately because you no longer have proof that vendors are carrying the required insurance. This creates immediate compliance problems that can violate your contracts and eliminate legal protections if accidents happen while you’re working with outdated certificates.

The solution is tracking proactively to prevent expirations. The best COI tracking software will handle and automate all of this for you. Software like CertFocus by Vertikal RMS can help you effortlessly track renewals before they become problems.

How CertFocus by Vertikal RMS Automates and Simplifies Vendor COI Management

CertFocus by Vertikal RMS eliminates the manual headaches of chasing vendors for certificates by automatically collecting, verifying, and monitoring insurance documentation while providing real-time alerts when policies expire or change. This automation saves hundreds of hours of administrative work while catching coverage gaps that manual processes tend to miss.

AI-Powered COI Collection and Verification Process

CertFocus by Vertikal RMS automatically reaches out to vendors for missing or expiring certificates, Hawk-I artificial intelligence technology is used to extract coverage information from submitted documents, and verify policy details within minutes of receiving coverage documents. This Hawk-I AI technology also catches policy exclusions and inadequate coverage limits that human reviewers might miss in a rush.

And when transitioning to automated COI management, you’ll want good support on your side to implement the new software: