Certificate of Insurance Requirements Explained

What Is a Certificate of Insurance?

A certificate of insurance (COI) is a standardized document issued by an insurance company or its authorized agent that summarizes the key terms of a carrier's insurance coverage. In the trucking industry, COIs are exchanged constantly -- shippers, brokers, and freight intermediaries require them before allowing a carrier to haul their loads. The most common format is the ACORD 25 certificate, which is a single-page summary recognized across the insurance industry.

A COI is not an insurance policy. It does not confer coverage, alter policy terms, or create contractual obligations. It is simply evidence that coverage existed at the time the certificate was issued.

What a COI Contains

A standard ACORD 25 certificate includes the following information:

• Named insured: The legal name of the motor carrier and its address
• Insurance companies: The names and NAIC (National Association of Insurance Commissioners) numbers of all insurers providing coverage
• Policy numbers: Each policy listed on the certificate
• Policy effective and expiration dates: The coverage period for each policy
• Coverage types: The lines of insurance in effect, typically including:
  • Commercial general liability
  • Commercial auto liability
  • Umbrella/excess liability
  • Workers compensation
  • Motor truck cargo
• Coverage limits: The dollar limits for each coverage type
• Certificate holder: The party requesting the certificate (typically the shipper or broker)
• Additional insured status: Whether the certificate holder has been added as an additional insured under any policies
• Description of operations: A free-text field describing the work being performed

When COIs Are Required

Motor carriers are routinely asked to provide COIs in several contexts:

1. Broker onboarding: Freight brokers require a COI before adding a carrier to their approved carrier list
2. Shipper contracts: Direct shippers require COIs as a condition of their transportation agreements
3. Load boards: Many load boards require carriers to upload a current COI to access available freight
4. Facility access: Warehouses, distribution centers, and ports may require a COI before allowing a truck on their property
5. Lease agreements: Landlords for terminals and yards require COIs from carrier tenants

What to Look for When Reviewing a COI

If you are a shipper or broker reviewing a carrier's COI, check these critical items:

• Dates: Confirm the policies are currently in force. A COI with expired dates provides no assurance of coverage.
• Named insured: Verify the entity name matches the carrier you are contracting with, including the correct USDOT and MC numbers
• Coverage limits: Ensure the limits meet your contractual requirements (commonly $1,000,000 auto liability and $100,000 cargo minimum)
• Additional insured status: If your contract requires it, confirm you are listed as an additional insured on the applicable policies
• Insurer ratings: Verify the listed insurance companies are financially sound by checking their AM Best rating

Cross-reference the COI with the carrier's FMCSA filings through our insurer search and authority lookup to verify that the coverage on the COI matches the official filings.

Additional Insured vs. Certificate Holder

These terms are frequently confused but have very different meanings:

• Certificate holder: The party that received the COI. Being a certificate holder gives you no coverage rights under the carrier's policy. You are simply being notified that coverage exists.
• Additional insured: A party added to the carrier's policy (typically general liability or auto liability) who receives coverage under that policy for claims arising from the carrier's operations. Additional insured status provides actual protection and must be specifically endorsed onto the policy.

Limitations of Certificates

Important limitations to understand:

• A COI is a snapshot in time. The carrier could cancel their coverage after the certificate is issued.
• The standard ACORD 25 states that it "does not amend, extend, or alter the coverage afforded by the policies."
• Certificates do not guarantee coverage for a specific claim. The actual policy terms govern whether a loss is covered.
• Many brokers and shippers use automated certificate tracking services to receive cancellation notices and renewal updates

For the most reliable verification of a carrier's insurance status, check their official FMCSA filings through our carrier search tools in addition to reviewing their COI.