A certificate of insurance (COI) in Colorado is a one-page summary that shows who insures a business, which coverages it carries, and what the limits are. It proves a policy exists. It is not part of the policy, and it does not add coverage for anyone. The current ACORD 25 form says so itself: it is issued for information only, gives the certificate holder no rights, and does not change the coverage in the policy.
Landlords, general contractors, and clients routinely ask for a certificate, and it is easy to assume it protects them. Protection under your policy comes from an additional insured endorsement, a separate document with its own wording. Below is how the two fit together and what Colorado and Denver require.
What a Certificate of Insurance Shows and What It Leaves Out
A standard certificate lists the named insured, the insurance company, each policy number with its effective and expiration dates, the types of coverage, the limits, and the certificate holder. A description box holds project or contract details.
What it leaves out is the fine print. It lists no exclusions, does not replace the policy, and reflects coverage only on the day it was issued. The ACORD 25’s cancellation wording defers to the policy’s own provisions, so a holder should not assume it will be told if the policy ends mid-project.
Certificate Holder vs. Additional Insured: Who Is Actually Protected
A certificate holder is the party that receives the certificate, usually a landlord, a general contractor, or a client. Holding it gives proof of coverage and nothing more. An additional insured is a party added to the policy itself, so it can be protected when a claim names it. The ACORD 25 draws that line directly: if the holder is meant to be an additional insured, the policy must contain additional insured provisions or be endorsed.
Typing a name into the description box does not create that protection. The endorsement does. Two ISO endorsements come up most for contractors. CG 20 10 covers the additional insured for your ongoing operations, and CG 20 37 covers completed operations, which matters when a defect surfaces after you leave the site. A contract that requires both needs both listed on your general liability policy.
A waiver of subrogation often travels with these requirements. It stops your insurer from pursuing the other party to recover what it paid on a claim, and the ACORD 25 notes that certain policies may require an endorsement for it. Ask your broker for copies of the endorsement forms, because a certificate that says “included” does not show whether the form matches the contract.
What Colorado Law Says About Insurance in Construction Contracts
Colorado limits how far a construction contract can push risk onto a subcontractor. Under C.R.S. § 13-21-111.5(6), a clause that makes one party indemnify, insure, or defend another against injury or property damage caused by the other party’s own negligence is void as against public policy. A contractor can still be required to carry insurance for its own acts and to name the owner or general contractor as an additional insured, but only to the extent the coverage responds to the contractor’s own acts or omissions.
When a subcontract demands additional insured status on every claim regardless of fault, have it reviewed before you sign. This is general information, not legal advice, and your contract and policy forms control.
Workers’ compensation has its own rule. Under C.R.S. § 8-41-401, a contractor that sublets part of its work is treated as the employer of the subcontractor’s employees and can be liable for their compensation claims. If the subcontractor carries its own workers’ compensation coverage before the work starts, the subcontractor and its insurer lose the right to seek contribution from the contractor above it.
What Denver’s Sample Certificate Instructions Require
The City and County of Denver publishes a sample contractor certificate. The certificate must mirror the sample. Policy limits must equal or exceed the contract’s. The policy start date must precede the contract’s effective date. The description box can hold only project or contract details plus one statement that the City and County of Denver, its officials, employees, and volunteers are additional insureds as required by written contract, for the appropriate policies only.
Denver bars qualifying phrases that hedge that statement, such as wording tying it to the policy’s terms and conditions or to whether the written contract requires it. It also asks that endorsements and policies not be attached. Extra language in the box gets the certificate rejected, and Denver reserves the option to move on to another contractor.
If you bid public work, send the sample to your broker before the bid, not after the award. Our page on insurance for contractors covers the coverage side.
A Pre-Signing Checklist for Contract Insurance Requirements
Run each contract’s insurance section through these checks before you sign.
- Match every required coverage and limit to your policy line by line. If the contract needs more than your primary general liability limits provide, a commercial umbrella policy is often how contractors close the gap.
- Identify which additional insured form the contract wants (ongoing, completed, or both) and whether it also asks for a waiver of subrogation or primary and non-contributory wording, which asks your policy to respond before the other party’s.
- Calendar the policy expiration and send the renewal certificate before the old one lapses.
- Match the other party’s legal name and address to the contract exactly.
- Ask for copies of the endorsements, not just the certificate.
What Additional Insured Requirements Can Cost
A certificate only records coverage you already hold, so the cost question sits with the endorsements behind it. A scheduled additional insured endorsement names specific parties and is added for each one. A blanket endorsement covers any party your contract requires. Some carriers include a blanket endorsement at no charge and others charge a fee for it, so the price varies.
Your price depends on your carrier, the number of parties and projects, your class of work, your claims history, and your limits, and higher required limits or a waiver of subrogation can change the terms. Send the contract’s insurance section to your broker before you sign and ask what each requirement costs on your policy. Our business insurance overview lists the coverages these requirements usually touch.
Frequently Asked Questions
Does a certificate of insurance mean I am covered?
A certificate of insurance shows that a policy was in force when the certificate was issued, but it does not guarantee coverage for a specific claim. The current ACORD 25 form states that it is issued for information only, gives the holder no rights, and does not change the coverage in the policy, so the policy terms and endorsements decide what is covered.
What is the difference between a certificate of insurance and an additional insured endorsement?
A certificate of insurance is a summary that proves a policy exists, while an additional insured endorsement is an amendment to the policy that gives another party coverage rights under it. The ACORD 25 form says the policy must contain additional insured provisions or be endorsed if the certificate holder is meant to be an additional insured.
Can a Colorado construction contract require additional insured coverage for the owner’s own negligence?
Generally no. Under C.R.S. 13-21-111.5(6), a Colorado construction contract can require a contractor to name the owner or general contractor as an additional insured only to the extent the coverage responds to the contractor’s own acts or omissions, and a requirement for coverage of damage the providing party did not cause is void as against public policy.
What is the difference between ongoing and completed operations additional insured coverage?
Ongoing operations additional insured coverage, commonly written on ISO form CG 20 10, applies to liability arising while the contractor is still performing the work. Completed operations coverage, commonly written on ISO form CG 20 37, applies to claims that arise after the work is finished, so a contract that calls for both needs both endorsements on the policy.
Need a certificate or an endorsement lined up before you sign a contract?