In practice, they are one of the most common reasons construction projects are delayed, payments are held up, and contracts are put at risk. Across construction, development, and property management, COI compliance failures create unnecessary friction that can easily be avoided with the right process and oversight.
Understanding where COIs break down — and how to fix them — is critical for keeping projects moving and protecting all parties involved.
Why Certificates of Insurance Matter More Than Ever
In construction, a COI is more than proof of insurance. It is a compliance document that confirms contractual obligations, risk transfer requirements, and financial responsibility. Owners, developers, lenders, and general contractors rely on COIs to ensure that subcontractors carry the correct coverage, limits, and endorsements before stepping onto a jobsite.
When a COI is incomplete or incorrect, the risk shifts immediately. Projects can be paused, access to the site can be denied, and payments can be delayed until compliance is confirmed.
The Most Common COI Compliance Failures
Many COI issues stem from small details that have large consequences. Common failures include missing or incorrect additional insured wording, policies that do not include primary and non-contributory status, limits that fall below contractual requirements, and expired or soon-to-expire policies that are not tracked properly.
Another frequent issue is certificates that reference coverage that does not actually exist on the policy. A COI alone does not amend coverage. Without the proper endorsement attached to the policy, the certificate may be invalid, even if it appears compliant at first glance.
How COI Errors Delay Projects and Payments
Most construction contracts require valid COIs before work begins and before invoices are paid. When compliance is not met, project managers and accounting teams are forced to halt approvals. This creates cash flow disruptions for contractors and unnecessary administrative back-and-forth for owners and developers.
Delays can also trigger contractual penalties or expose parties to uninsured claims if work proceeds without verified coverage in place.
Additional Insured and Endorsement Pitfalls
Additional insured language is one of the most misunderstood areas of COI compliance. Blanket endorsements may not apply to every contract. Some endorsements limit coverage to ongoing operations only, while others exclude completed operations entirely.
Incorrect assumptions around these endorsements often leave owners or general contractors exposed after a loss, despite having a certificate on file.
Tracking Expirations and Ongoing Compliance
COI compliance is not a one-time task. Policies expire, limits change, and subcontractors rotate in and out of projects. Without a system to track expirations and verify renewals, compliance gaps appear quickly.
Projects with long timelines are especially vulnerable if COIs are not actively monitored throughout the life of the job.
Why a COI Review Is a Risk Management Tool
A proper COI review is not administrative paperwork. It is a core risk management function. Reviewing certificates against contract language, verifying endorsements, and confirming carrier ratings helps ensure that risk is properly transferred and that coverage will respond as expected if a claim occurs.
This proactive approach reduces disputes, strengthens contractual protection, and keeps projects moving without interruption.
How Skyscraper Insurance Supports COI Compliance
At Skyscraper Insurance, we help construction firms, developers, and property owners implement COI compliance processes that actually work. Our team reviews certificates for accuracy, verifies endorsements, aligns coverage with contract requirements, and helps identify gaps before they create problems.
We work closely with project teams to streamline compliance, reduce delays, and protect all parties involved.
If you are experiencing COI-related delays, payment holds, or compliance confusion, a structured COI compliance check can bring clarity and control back to the process.
