You’ve got a new client ready to sign on the dotted line and hire your small business to do work for them, when suddenly they ask you to provide a certificate of insurance (COI) and they want to see it by tomorrow or they won’t sign the contract. Now what?
Take heart, business owner, this happens more often that you might think and it’s manageable.
Your clients ask to see your COI because it’s valid proof you have business insurance – and that hiring you won’t expose them to costly damages or lawsuits.
In other words, if something goes wrong – damage to their property, a third-party bodily injury, or a claim tied to your work – they want your liability insurance to respond first, not their wallet (or their insurance).
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What Is a Certificate of Insurance (COI) in Canada – and What Does It Show?
In simple terms, a certificate of insurance (often called proof of insurance or proof of liability insurance) is a one-page digital document that proves you have active business insurance.
It’s a snapshot of the key coverages, coverage limits, and effective dates of your policy. It reassures them you’re not operating uninsured.
For many of your clients, a COI is a basic professionalism signal similar to having proper licensing. It gives them confidence in your business.
Many commercial clients, such as landlords, property managers, event venues, and general contractors must collect COIs from their vendors and subcontractors to meet their own contract obligations or to work with you.
Some clients will also require being named as an additional insured, which means your liability policy extends certain protections to them if a claim arises from your work during the project. From a risk perspective, a COI helps transfer financial responsibility away from your client and toward your insurance policy if a covered claim occurs.
Your clients may require that professional liability insurance (errors and omissions insurance) be included on your COI. Other typical requests from additional insureds may involve:
Adding primary and non-contributory endorsements: A primary endorsement indicates your policy takes the lead responsibility for covering a loss; a non-contributory endorsement means your insurer will not seek contribution from other policies that may also cover the same loss.
Waivers of subrogation: Your insurer gives up its right to seek reimbursement from a third party for covered losses. It helps prevent lawsuits between business partners, and is common in construction and property leases.
A standard Canadian certificate of insurance typically includes:
- Legal business name and address
- Certificate holder or policyholder name
- Insurance policy number, effective and expiry dates
- Types of coverage (e.g., commercial general liability, professional liability)
- Coverage or policy limits, exclusions, and deductibles
- Insurer name and broker contact details
A COI is not your full liability insurance policy, nor is it a contract or guarantee. It exists to give you clients quick proof that you’re insured without sharing all the private details of your policy.
Why Do Clients Ask for a Certificate of Insurance?
Your clients are as risk averse as you are. It’s not personal, it’s about risk management. They ask to see your business’s COI for many reasons, including:
To Protect Their Financial Interests and Assets
If an accident occurs, a mistake is made, or an incident beyond your control happens and leads to property damage or injuries, they want to know liability doesn’t fall on them.
It’s a Standard Requirement
Clients asking to see your COI is common for commercial contracts, vendor onboarding, accessing private property, or working for government agencies and corporations.
It Confirms You’re Legit and Professional
A COI confirms for your clients that they’re dealing with legitimate, trustworthy professionals. It tells them that you’re adequately insured and it shows you are a responsible, stable, and prepared business owner.
Your Client’s Insurer or Lawyer May Require It
Commercial or residential clients may be obligated to collect a COI from a general contractor or vendor.
Being asked by a client for your COI is often a good sign – it indicates your client is serious about hiring you and wants to work with you.
Which Canadian Businesses Commonly Need a COI?
In Canada, any business that provides services, advice, or physical work for a client is likely to be asked for a COI. This commonly includes:
- Contractors and skilled trades professionals
- Consultants, advisors, and freelancers
- IT and tech service providers
- Cleaning and maintenance businesses
- Event planning professionals
- Health and wellness practitioners
- Anyone working on a client’s premises or handling client property
Even sole proprietors and home-based businesses in various industries are frequently asked to provide their clients with a COI.
What Happens If You Don’t Have a Certificate of Insurance Ready?
Think of having liability insurance and a certificate of insurance (COI) as a business enabler.
A COI gives your clients the confidence they need to hire or work with you. Without having a COI ready to show them, it can lead to:
- Delayed project starting dates
- Lost contracts or projects
- A client could decide to choose one of your competitors who does have a COI
- Excess stress as you scramble at the last minute to get one from your broker or insurer
What Clients May Do If You Can’t Provide a COI
If you don’t have a certificate of insurance ready, clients may legally be unable to hire you, even if they want to.
Many contracts, property access rules, and vendor policies require proof of insurance before work can begin.
How Fast Can You Get a Certificate of Insurance in Canada?
In many cases, Canadian small businesses can receive a certificate of insurance within 24 hours or even the same day once coverage is active.
Here are four simple steps to get a certificate of insurance (COI) for your small business:
1. Have Active Business Insurance
You must have an active, valid business insurance policy already in place to get a COI from your broker or insurer. Common policies that come with COIs include general liability insurance and professional liability insurance (also called errors and omissions insurance).
2. Request a Certificate of Insurance from Your Broker or Insurer
It doesn’t typically take very long to get a certificate of insurance (COI) from your broker or insurer. If no policy changes are required, issuing a COI is often an administrative task that can be completed digitally within minutes. Many brokers or insurers will simply email you a PDF document with your COI directly.
3. Know What Your Clients Are Asking For
When a client asks to see your certificate of insurance (COI), verify with them what it is they need to see. For example, a COI will include your business’s name and address, and an overview of your policy’s coverages and coverage limits. They may ask to be included as an additional insured on your policy during the project you’re doing for them. Be sure to inform your broker or insurer if they do.
4. Keep Your COI Updated
Liability insurance policies are typically one-year contracts between your business and a brokerage or insurer. When a policy expires, so does the certificate of insurance (COI) accompanying it. Therefore, when you update and renew your business insurance, that’s the time to ask your broker or insurer to issue you a new COI.
Tips to Avoid Stress Getting a Certificate of Insurance in the Future
Being insured and having a valid certificate of insurance (COI) is part of being “business-ready”. The best way to do that and not stress or scramble at the last moment getting a COI is to:
- Get business insurance before you need it
- Ask about obtaining a COI when you purchase your coverage
- Save a copy of your COI so you have quick access to it
- Always work with an insurance broker that’s familiar with your industry and understands your business’s needs
Frequently Asked Questions About Certificates of Insurance
How long does a certificate of insurance last in Canada?
A COI is valid for the same term as your insurance policy – typically one year. When your policy renews, you’ll need a new COI.
Does a certificate of insurance cost extra?
Most Canadian brokers issue COIs at no additional cost, as long as your policy is active and unchanged.
Can I get a COI without business insurance?
No. A certificate of insurance can only be issued if you already have an active insurance policy.
Do I need a new certificate of insurance for each client?
Often yes. Many clients require their business name to appear as the certificate holder, which means your broker may issue a separate COI for each contract or project.
Be Ready When Clients Ask for a COI: Get Business Insurance
A comprehensive, low-cost business insurance policy is vital for protecting your finances and assets – and your clients’ finances and assets. It’s also required for you to be ready when your clients ask to see a certificate of insurance (COI).
Get business insurance and your certificate of insurance (COI) fast.
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Our licensed brokers will compare coverage from 50+ insurers, customize the right policy to suit your needs and budget, and issue your policy documents and a COI in 24 hours or less.
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