A COI shows that insurance exists. It doesn’t prove the owner is covered.
“We have their certificate of insurance” is a common reassurance from property owners, developers, and managers when discussing a contractor’s insurance. The certificate arrives, someone checks the limits and expiration dates, and work begins. Everyone assumes the owner is protected.
But a certificate of insurance (COI) does not create coverage or guarantee that the insurer will defend the owner when a claim comes in. If coverage doesn’t respond, the owner may end up paying defense costs, settlements, or losses it expected the contractor’s insurer to cover.
Meaningful protection usually comes from two things: contract terms that require specific coverage, and a review of the actual policy before work begins. This can be true even when the parties use AIA contract documents.
