When you hire someone to work inside or around your home—whether a plumber repairing a leak, an electrician rewiring a room, a contractor managing a renovation, or even a pet‑sitter or house‑sitter—you probably focus on the cost, timeline and quality of work. But one critically important element often gets overlooked: the insurance status of the person or business you’re hiring. A simple require for a Certificate of Insurance (COI) can protect you from unexpected liability, property damage costs and even major headaches down the road.
In this article, we’ll explain:
- What a COI is and why it matters for homeowners
- What types of coverage to look for
- What to examine in the COI document
- The risks you face if you skip this step
- Practical steps you can take to safeguard your home
What Is a Certificate of Insurance (COI)?
A Certificate of Insurance (COI) is a document issued by an insurance company or broker that verifies a party (for instance, your contractor) has one or more types of insurance policies in effect.
It typically includes:
- The name of the insured party (the contractor or service provider)
- The name of the insurance carrier(s)
- Policy numbers, effective dates and expiration dates
- Types of coverage (e.g. General Liability, Workers’ Compensation)
- Coverage limits
- The certificate holder (sometimes the homeowner)
- Any special conditions or endorsements
It’s essentially a snapshot that confirms the service provider had active insurance on the date the COI was issued. (But, note: it does not guarantee coverage remains active beyond that date.)
Why It Matters to You as a Homeowner
Why should you care about a document between the contractor and their insurer? Because if something goes wrong, you may end up on the hook. Here’s how:
1. Injury on your property.
If a worker is injured while working on your property and the contractor doesn’t carry proper workers’ compensation or liability insurance, you could become liable for medical costs or legal action.
2. Property damage.
Imagine a plumbing subcontractor accidentally floods a floor, or a roofer drops equipment through a ceiling. If they lack sufficient general liability insurance, you might have to cover the repair—or see your homeowners policy bear the burden.
3. Reimbursement risk.
Even if your homeowners insurance pays out, you may face higher premiums or deductibles. Without a COI verifying proper insurance from your contractor, your insurer might contest recovery from the actual negligent party.
4. Legal exposure.
Some jurisdictions hold the property owner responsible for ensuring contractors are properly insured. Hiring someone without verifying their coverage could expose you to penalties or liability.
In short: requesting and reviewing a COI is not optional—it’s a key risk control step for any homeowner planning work on their property.
What Types of Coverage Should You Look For
When you receive a COI, here are the primary types of insurance and coverage thresholds that typically matter for homeowners:
- General Liability Insurance – This covers claims for bodily injury or property damage caused by the contractor’s work. Many experts suggest minimum coverage of $1 million for this type.
- Workers’ Compensation Insurance – If the contractor has employees or uses subcontractors, this coverage helps protect you from liability if a worker is injured on your property.
- Professional or Errors & Omissions Insurance – For specialized services (design work, HVAC system design, etc.), you may want to verify whether this coverage is in place.
- If applicable: Commercial Auto, Umbrella Liability – If the work involves vehicles delivering materials or expensive risk exposure (e.g., high‑end home renovation), check whether the contractor’s umbrella or auto liability coverage aligns with your project’s risk.
Also consider whether you should be listed as Additional Insured on their policy, giving you direct rights if a claim arises. Simply being listed as the “certificate holder” is not the same.
How to Review a COI (and What to Watch For)
When you require a Certificate of Insurance (COI) from your service provider, don’t just check the dates—take time to evaluate the key elements:
- Effective and expiration dates – Make sure the coverage period covers your project timeline.
- Named insured – Ensure the name on the certificate matches the business you’re engaging.
- Coverage types & limits – Do they reflect the scale or risk of the work?
- Additional insured listing – Are you or your home added as an additional insured if you requested it?
- Special conditions or exclusions – Some policies exclude specific risk types; watch for them.
- Reminder that a COI is a snapshot – The policy could lapse after issuance, so checking validity (via insurer or broker) is prudent.
Keep a copy of the COI in your records. If a claim arises months later, you’ll have proof you requested it.
Risks of Skipping This Step
Failing to obtain a valid COI might save a little time or money up front—but at what cost? Some of the common pitfalls include:
- Being financially liable for damage or injury you expected someone else to cover.
- Your homeowners insurance claiming breach of contract and denying coverage.
- Higher premiums or even cancellation of your homeowners policy if a claim is traced back to negligent subcontractors.
- Legal battles, lien problems, or contractor bankruptcy leaving you with unfinished or unsafe work.
It’s simply too high a risk for homeowners to go without this basic insurance verification step.
A Homeowner’s Checklist for COIs
Here’s a quick checklist you can use before letting any service provider begin work:
- Request a current Certificate of Insurance from every plumber, electrician, contractor, installer, pet/house‑sitter or service provider.
- Verify the named insured matches the business you’re hiring.
- Confirm the policy type (General Liability, Workers’ Comp) and limits are appropriate for the job.
- Ensure the policy’s effective dates cover the entire scope of work.
- Ask to be listed as Additional Insured, if required for your protection.
- Keep a copy in your records and consider verifying coverage with the insurer.
- If a subcontractor is used, request their COI as well or verify the primary contractor covers their subcontractors.
- Call your homeowners insurance agent to understand how the contractor’s coverage integrates with your policy.
Protect Your Home, Prevent Unexpected Costs
At Coughlin Insurance Services, our goal is to help you protect your home, your assets and your liability exposure. Verifying insurance isn’t just about paperwork—it’s about peace of mind. Before any work begins, ask for the COI. It’s an easy step that can save you thousands—if not more—in unexpected costs and legal exposure.
Take Action Before It’s Too Late
Whether you’re hiring a handyman, scheduling an HVAC upgrade, or letting someone care for your home while you’re away, requesting a Certificate of Insurance (COI) should be non-negotiable. Don’t leave your property—or your peace of mind—at risk. At Coughlin Insurance Services, we’re here to help you understand, request, and review COIs to make sure everyone stepping onto your property is properly insured. Let us help you protect your biggest investment—your home.