What is a Certificate of Insurance?

A Certificate of Insurance, or COI, is a document that confirms the existence of liability insurance coverage.

Why should strata and condo corporations ask for Certificates of Insurance from their contractors?

It is important to know if a contractor you hire does or does not have insurance, or if they may not be insured for the job specified (e.g., snow removal, painting). If a contractor does not have insurance, it can be difficult to recuperate costs if they negligently cause a loss. Securing a Certificate of Insurance and being added to a contractor’s policy as an “Additional Insured” should be included in any strata’s risk management protocols. 

How often should Certificates of Insurance be requested?

Any contractor who enters the corporation’s property should provide COIs on an annual basis.

What is the difference between “Named Insured” and “Additional Insured”?

A Certificate of Insurance will show a Named Insured and may add an Additional Insured or simply be used as evidence of insurance. A Named Insured is the legal entity for the contractor, such as Bob Smith Contracting Ltd.

The intent of adding an Additional Insured is to provide coverage for the vicarious liability of the Additional Insured resulting from the actions of the Named Insured (contractor). For the purposes of this article, the strata corporation would be the Additional Insured.

Example of Canadian Standard Insurance Certificate (CSIC)

This is an example of the Canadian Standard Insurance Certificate document. However, certificates can come in a variety of formats.

  1. Name of insurance brokerage
  2. Name of contractor / company providing services. This should be a legal entity with a full mailing address.
  3. Name of insurer / insurance company providing the liability coverage.
  4. Coverages, policy number, effective and expiry dates.
  5. Adding the strata or condo corporation as an Additional Insured for the duration of the project, be it snow removal, landscaping, power washing, etc.
  6. Name and mailing address of strata or condo corporation.
  7. If the contractor’s insurance is cancelled, 30 days’ notice should be provided to the certificate holder. This is to alert the strata or condo corporation that the contractor no longer has insurance or has gone to an alternate insurance carrier. A new certificate should be requested immediately with the new broker, if applicable. Document should be signed by the brokerage.

A Certificate of Insurance is not a separate contract between the insurer and the contractor. It confirms the original contract to an external party. Is also does not and cannot create or alter coverage.

Your insurance broker can assist with requesting certificates from contractors and interpreting the various documents you may be provided.