A drawer full of certificates of insurance looks like compliance. It isn’t, unless someone has actually verified what’s on each one. Here’s what a COI proves, what it doesn’t, and what to check before approving any vendor.
What a certificate of insurance actually is
A COI is a summary document, issued by an insurer or their representative, confirming that a policy existed as of the date it was issued. It’s a snapshot, not a guarantee — it doesn’t create coverage on its own, and it can be technically accurate while still leaving you exposed if the underlying policy doesn’t match what you actually need.
What to check on every certificate
Coverage types should match the work being performed. A painting contractor needs general liability; a contractor operating vehicles on your property should also carry commercial auto; anyone with employees should carry workers’ compensation. A certificate showing only general liability when the scope calls for more is incomplete, not just imperfect.
Coverage limits should meet or exceed your property’s requirements — often $1–2 million per occurrence is standard for general contracting work, though your specific requirements may differ by property or ownership group.
Additional insured status matters more than most property managers realize. Unless your management company or ownership entity is specifically named as an additional insured on the vendor’s policy, you may not actually be covered if a claim arises from their work on your property — even if their certificate looks complete.
Effective dates need to be current and shouldn’t lapse mid-project. A certificate that’s valid today but expires before a multi-week project wraps up is a gap waiting to happen.
Get certificates directly from the insurance agent
Ask vendors to have their insurance agent send the COI directly to you rather than forwarding a copy themselves. This isn’t about distrust — it just removes any possibility of an altered or outdated document making it into your files.
Build it into onboarding, not just verification
The most effective approach is requiring a compliant COI as a condition of approval before a vendor is added to your approved list — not verifying it after work has already started. Screen once, verify thoroughly, and track renewal dates going forward.
Total Renovation provides current certificates of insurance on request, before any work begins — exactly the kind of documentation your management company or ownership group already expects from any vendor on your properties.
Contact us for a copy of our current COI or learn more about our Residential Property Manager services.