What Is a Certificate of Insurance?

A certificate of insurance (COI) is a document issued by an auto insurance company or broker to verify the existence of insurance coverage. The document may contain:

• The insurance agent's name, address, and phone number.

• The insurance company's name.

• Policy number and period.

• Name and address of the insured party.

• The type of commercial insurance coverage purchased.

• Effective date of the policy.

• The types and dollar amount of applicable liability for bodily injury and personal property damage.

• Signature of the issuing insurance agent.

• Date the certificate was prepared.

In interstate trucking or intrastate transportation, a certificate of insurance is required because of the potential for large losses if a driver or business owner is held legally liable for an accident. Because of their size and the potentially valuable cargo they may be carrying, accidents involving commercial vehicles tend to have higher costs than those involving a personal car or truck.

A certificate of insurance is not a valid insurance policy. It is merely a statement of what coverage exists at the time the certificate was issued.

When Is a Certificate of Insurance Needed?

Examples of situations in which a certificate of insurance may be needed include:

• Compliance with federal, state, or local regulations regarding commercial auto insurance.

• Lease or rental agreements for commercial vehicles.

• Hiring temporary workers to drive commercial vehicles.

• Performing a job involving a CDL driver with a probationary license.

• Operating oversized vehicles.

If you are asked to provide a certificate of insurance, you should contact your agent for assistance with this type of truck filing. Your agent may ask for the following information to prepare the document:

• Doing Business As (DBA) name

• Social Security number

• Business address and phone number

• Docket number

• Department of Transportation number

The time required to complete an insurance filing varies from company to company. However, if your insurance company uses an automated system, you may be able to obtain a certificate of insurance in as little as 48 hours.