Why a Certificate of Insurance (COI) is Non-Negotiable for Your Vendors

When you hire a contractor, landscaper, or any third-party vendor to work on your property, you are also inheriting their risk. A simple document—the Certificate of Insurance (COI)—is your first line of defense. Here's why you should never let a vendor start work without one.

As a property owner, you are diligent about managing your own risks. But what about the risks brought onto your property by others? Every time a vendor—be it a plumber, electrician, window washer, or security firm—steps foot on your property, you face potential liability if they cause damage or if one of their employees gets injured.

This is where the Certificate of Insurance (COI) becomes a critical risk management tool.

What is a COI?A COI is a one-page document that proves a vendor has active insurance coverage. It summarizes their key policies, most importantly their General Liability and Workers' Compensation insurance.

Why is it Non-Negotiable?

1. It Protects You From Their Mistakes: If a contractor accidentally starts a fire or causes major water damage, their General Liability policy should be the one to pay for it, not yours. Without a COI, you have no proof they have coverage, and the claim could fall on your policy.

   
   

2. It Protects You From Their Employee Injuries: If a vendor's employee gets hurt on your property, their Workers' Compensation policy should cover the medical bills. If they don't have it, they could sue you for damages.

   
   

3. It's a Sign of Professionalism: Reputable, licensed, and insured vendors will have a COI ready and will provide it without hesitation. A vendor who can't or won't provide one is a major red flag.

   
   

Best Practice: Always request a COI before any work begins. For extra protection, ask to be named as an "Additional Insured" on their policy. This provides you with an even stronger layer of protection under their coverage.

Managing vendor risk is a key part of a comprehensive insurance strategy. Let Sunterra help you build the right risk management protocols for your portfolio.