Certificate of Insurance (COI): Why Continuous Validity Is Non-Negotiable

A Certificate of Insurance (COI) is not administrative paperwork. It is a risk-control instrument. For condominium associations, property managers, and boards, an expired or incomplete COI converts routine operations into unmanaged liability.

What a COI Actually Represents A COI is proof that a vendor or contractor maintains active insurance coverage at the time work is performed. This typically includes general liability, workers’ compensation, automobile liability, and—when required—umbrella or professional coverage. The document is a snapshot of risk transfer. If the snapshot is outdated, the risk reverts back to the association.

Why “Expired” Equals “Uninsured” Insurance coverage is time-bound. The moment a COI expires, there is no assurance that coverage still exists. Vendors change carriers, reduce limits, cancel policies, or lapse due to nonpayment. Relying on an old COI is legally indistinguishable from relying on none at all.

Operational Consequences of Invalid COIs

• Liability exposure: Injuries, property damage, or third-party claims can attach directly to the association.

• Insurance conflicts: Association carriers may deny or limit claims if proper vendor insurance was not verified.

• Regulatory and audit risk: Boards have a fiduciary duty to mitigate foreseeable risk. Missing or expired COIs are a documented failure point.

• Contract enforcement issues: Many contracts require active insurance as a condition of work. An invalid COI undermines enforceability.

• 
  

Why “We’ll Get It Later” Fails Post-incident insurance requests are ineffective. Coverage must be active at the time of loss. No retroactive fix exists. This is why COI compliance is a precondition, not a cleanup task.

Best-Practice Standard

• COIs collected before work begins

• Policy limits verified against association requirements

• Additional insured language confirmed where applicable

• Expiration dates actively tracked

• Updated COIs obtained automatically upon renewal

• One authoritative storage location with version control

The Structural Problem Most Associations Have COIs are often scattered across inboxes, desktops, and vendor folders with no expiration tracking. This creates silent failure. Everything appears compliant—until it isn’t.

Why Continuous Validity Matters COI management is not about documents. It is about preserving the legal firewall between association assets and third-party risk. Continuous validity is the difference between controlled exposure and preventable loss.

For associations and management offices, treating COIs as a living compliance system, not a static file, is the baseline for responsible operations. Click here to receive a free file review and learn how Documinium provides structured, reliable solutions for tracking and maintaining Certificates of Insurance.