What is a Certificate of Insurance (COI) and why do tree services need one?

A Certificate of Insurance — commonly called a COI — is a standardized document (ACORD form 25) that summarizes your insurance coverage. It lists your policy types, carrier names, policy numbers, effective dates, and coverage limits. It does not modify or extend your policy in any way; it simply serves as proof that coverage exists as of the date it was issued.

For tree service companies, COIs are a daily operational necessity. Residential clients increasingly ask for proof of insurance before hiring a tree company, and commercial clients almost universally require it. Property management companies, HOAs, general contractors, municipalities, and utilities typically will not issue a purchase order or allow you on-site without a current COI on file. Many require specific minimum limits — commonly $1 million per occurrence general liability, $2 million aggregate, statutory workers' compensation, and $1 million commercial auto liability.

The COI also identifies certificate holders — the parties who have requested proof of your coverage. Being listed as a certificate holder does not grant any additional coverage or rights under your policy. However, it does entitle the holder to receive notice if your policy is cancelled or non-renewed, giving them time to find an alternative contractor or require you to reinstate coverage.

An important distinction exists between being a certificate holder and being an additional insured. A certificate holder simply receives proof of insurance and cancellation notices. An additional insured is actually added to your policy and receives coverage under it for liability arising from your work. Many commercial clients require both — they want to be listed as a certificate holder on the COI and as an additional insured via endorsement on your general liability policy.

Your insurance agent or broker can issue COIs on demand, usually within 24 hours. Many agencies now offer online portals where you can generate COIs instantly. If your business regularly responds to bid requests or emergency storm work, having the ability to produce a COI quickly is a competitive advantage. A delay in providing proof of insurance can cost you a contract. Keep digital copies of your current COIs on your phone and in your trucks so you can provide them on-site when asked.