How To Verify Certificate Of Insurance

Knowing how to verify a certificate of insurance is not optional for anyone who requires proof of coverage from a vendor, contractor, or subcontractor. A COI that looks legitimate but reflects a lapsed or fake policy creates real uninsured liability exposure the moment a claim occurs.

Property managers, general contractors, government agencies, and any business that hires outside vendors need a repeatable verification process. ACORD 2024 survey data found that approximately 3% of commercial COIs contain material errors: wrong limits, incorrect coverage types, or lapsed policies. For an agency or certificate holder processing hundreds of certificates annually, 3% is not a rounding error.

This guide walks through the exact seven-step process, the NAIC verification tool, the red flags that signal a fraudulent or altered certificate, and a verification checklist you can use on every incoming COI.

Key Takeaways

• ACORD 2024 found that approximately 3% of commercial COIs contain material errors, including wrong limits, wrong coverage types, or lapsed policies.
• COIs more than 90 days old may reflect lapsed policies; always request a current certificate before project start.
• The named insured on the COI must match the exact legal entity in the contract: "ABC LLC" and "ABC Construction Inc." are not interchangeable.
• Carrier legitimacy is verifiable in under two minutes using NAIC's free carrier lookup at apps.naic.org; a carrier not listed there is a fraud red flag.
• "Additional insured" written in the Description of Operations means nothing unless confirmed by a policy endorsement from the carrier.
• For high-value contracts, direct verification with the issuing agency by phone is the most reliable method; do not rely solely on what the certificate states.

Who Needs to Verify COIs and Why

Certificate verification is not only an insurance agency task. Any party that requires proof of insurance from a vendor or contractor before allowing them on site, awarding a contract, or signing a lease needs a verification process.

The common parties who must verify incoming COIs include:

• Property managers: require COIs from contractors, vendors, and tenants who bring their own liability exposure onto the property.
• General contractors: require COIs from every subcontractor on a job site before work begins.
• Government agencies: require COIs from vendors before contract execution, often with specific endorsements (additional insured, primary and noncontributory).
• Commercial tenants and landlords: require COIs at lease execution and at each renewal.
• Any business hiring outside vendors: landscapers, IT contractors, cleaning services, and others who work on premises carry liability risk that flows back to the property owner if their coverage lapses.

Accepting a certificate without verifying it creates the same risk as not requiring one at all. If a claim occurs and the vendor's policy is lapsed, cancelled, or had limits lower than required, the certificate holder absorbs the uninsured loss.

The 7-Step COI Verification Process

Each step below corresponds to a specific element on the ACORD 25 certificate form. Work through all seven before accepting any certificate as valid.

Step 1: Confirm the Certificate Date

COIs more than 90 days old may reflect lapsed policies. Carriers can cancel or non-renew policies mid-term, and an older certificate has no way of reflecting that change.

Check the date in the upper right of the ACORD 25 form. If the certificate is older than 90 days, request a current certificate before accepting it. For ongoing contracts, build in a standing requirement: the contractor must provide a new COI at each policy anniversary.

Step 2: Verify the Named Insured

The named insured printed on the COI must match the legal entity named in the contract. This is one of the most common and consequential errors on COIs.

"ABC LLC," "ABC Construction," and "ABC Inc." are three distinct legal entities. If the COI names a different entity than the contract, the insured party in the contract may have no coverage under that policy. Do not accept a verbal explanation. Require a corrected certificate that matches the contract entity exactly.

Step 3: Check the Carrier Names and NAIC Numbers

Every carrier listed on a COI has a corresponding NAIC number. NAIC's free carrier lookup tool at apps.naic.org lets you verify in under two minutes that a carrier is licensed to write business in the relevant state and is in good standing.

Enter the NAIC number from the certificate into the lookup. Confirm that the carrier name matches, that it is licensed in the state where the work will be performed, and that it shows no active administrative actions. AM Best ratings (available at ambest.com) provide an additional data point on financial stability. A carrier rated below B+ warrants additional scrutiny.

A carrier that does not appear in NAIC's database is a serious fraud red flag.

Step 4: Verify Coverage Types and Limits

Read every line of Section A (Commercial General Liability), Section B (Auto), Section C (Umbrella/Excess), and Section D (Workers Compensation) on the ACORD 25 form. Confirm that:

• Every coverage type required by the contract is listed.
• Limits meet or exceed the contract minimums for each coverage type.
• The limits shown are per-occurrence, not aggregate only (unless the contract specifies aggregate).

Missing coverages and limits that fall short of contract minimums are the two most common material errors found in ACORD 2024 data. Do not assume that a certificate from a known contractor is complete.

Step 5: Check Policy Effective Dates

The policy period on the COI must be current and must extend through the full project or contract period. A policy expiration date that falls mid-project creates a coverage gap unless the contractor renews and provides a current certificate.

If the policy expires before the contract ends, require the contractor to provide a renewal certificate immediately upon policy renewal. Build this requirement into the contract itself.

Step 6: Verify Endorsements

The Description of Operations box on the ACORD 25 form is where additional insured (AI) status, waiver of subrogation (WOS), and primary and noncontributory (P&NC) language are typically noted. But the presence of that language in the Description of Operations does not confirm the endorsement exists.

An endorsement must be attached to the policy by the carrier. For high-stakes contracts, request a copy of the actual endorsement from the issuing agent. A contractor can type anything into the Description of Operations box. Only the carrier can issue an actual AI endorsement.

Contracts that require AI, WOS, or P&NC should specify that the endorsement must be attached to the certificate. If the endorsement copy is not provided, call the issuing agency to confirm it is on the policy.

Step 7: Call the Carrier or Agent to Confirm Coverage Is in Force

For large construction projects, high-value equipment leases, or any contract where an uninsured claim would be catastrophic, the final verification step is a direct phone call to the issuing agency.

Do not use the phone number printed on the certificate. Instead, look up the agency independently (via their website or a trusted contact list) and call directly. Ask the agent to confirm that the named insured has active coverage under the policy number listed, with the limits and endorsements shown.

This step takes five minutes and is the most reliable verification available.

The NAIC Verification Process

NAIC's carrier lookup at apps.naic.org is a free public tool that provides real-time carrier licensing data for all 50 states. Here is how to use it:

1. Go to apps.naic.org and select "Company Search."
2. Enter the NAIC number printed on the certificate in the NAIC Number field.
3. Confirm the company name matches what is listed on the COI.
4. Click the company name to view its profile. Check the "State of Domicile" and "Lines of Business" to confirm it is authorized to write the coverage type listed on the COI in the relevant state.
5. Review the "Financial Ratios" and any listed administrative actions or complaints.

If the carrier number does not return a result, or if the name does not match, stop the verification process. Do not accept the certificate. Contact the issuing agency for clarification before proceeding.

Red Flags on a COI

The following indicators do not automatically mean a certificate is fraudulent, but each one warrants additional verification before acceptance.

• Certificate issued by the insured, not the agent: the contractor or vendor produced the certificate themselves. Legitimate COIs are issued by the insured's agent or broker.
• Coverage limits that exactly match contract minimums with round numbers: real policies rarely land on exactly $1,000,000.00 per occurrence. Altered certificates often round up to match contract requirements.
• Endorsements listed in the Description of Operations that do not align with the policy type: WOS on a GL policy requires a specific endorsement; if the DOO lists it but no endorsement is attached, request confirmation.
• Carrier name not recognizable and not in NAIC's database: fabricated or misspelled carrier names are a common feature of fraudulent COIs.
• Policy dates that do not align with standard 12-month policy periods: a policy showing 14 or 16 months on a standard commercial GL policy is unusual.
• Font or formatting inconsistencies on the ACORD form: different font sizes or typefaces within the same field are a sign of digital alteration.
• Producer information that does not match a licensed agency: verify the producer name using your state's department of insurance license lookup.

COI Verification Checklist

Common Questions About COI Verification

What is the correct process for verifying a certificate of insurance?

Verification follows seven steps: confirm the certificate date, verify the named insured matches the contract entity, check carrier licensing using the NAIC lookup at apps.naic.org, verify all required coverage types and limits, confirm policy effective dates cover the full contract period, verify that endorsements (AI, WOS, P&NC) are confirmed by actual policy endorsements, and call the issuing agency directly to confirm coverage is in force. All seven steps are necessary for high-stakes contracts.

How do you verify that a carrier listed on a COI is legitimate?

Go to apps.naic.org and use the Company Search tool. Enter the NAIC number from the certificate. Confirm that the carrier name matches, that it is licensed in the relevant state, and that it is authorized to write the coverage type listed. A carrier not found in the NAIC database should be treated as a fraud indicator. AM Best ratings at ambest.com provide additional financial stability data.

How old can a certificate of insurance be before you should request a new one?

Treat any COI older than 90 days as potentially outdated. Carriers can cancel or non-renew policies at any time, and a certificate issued months ago has no way of reflecting a mid-term policy change. For ongoing contracts, require a new certificate at each policy anniversary.

What does it mean when additional insured is listed on a COI but not confirmed by endorsement?

It means very little. The Description of Operations box on an ACORD 25 form can be filled in with any text. Only a carrier-issued endorsement actually adds additional insured status to the policy. If the contract requires AI status, request a copy of the endorsement itself. If the agent cannot produce it, the AI status is not confirmed.

What are the signs that a certificate of insurance may be fraudulent?

Key signs include: font inconsistencies within the same field on the ACORD form; coverage limits that conveniently round to exactly match contract minimums; a carrier name not found in NAIC's database; a policy date range that is longer or shorter than a standard 12-month term; a producer address or phone number that does not match any licensed agency; and a certificate that appears to have been issued by the contractor rather than their agent.

Should you call the agent or carrier directly to verify a COI?

For high-stakes contracts, yes. Call the issuing agency using a phone number you located independently, not the number printed on the certificate. Ask the agent to confirm that the named insured has an active policy with the limits and endorsements shown. This step takes five minutes and is more reliable than any visual check. For routine low-value contracts, the checklist process above may be sufficient, but direct confirmation is always the most defensible verification method.

BrokerageAudit's COI Manager verifies incoming certificates against carrier records automatically, flagging discrepancies before they create uninsured gaps. See how it works →

Written by Javier Sanz, Founder of BrokerageAudit. Last updated April 2026.