What to Do When a Certificate of Insurance Has Errors: Complete Guide

Discovering errors on a certificate of insurance (COI) can create significant compliance risks and delay important business operations. When a certificate has errors, immediate action is necessary to protect your organization from potential liability and ensure proper coverage. This comprehensive guide walks you through exactly what to do when a certificate has errors, from identification to resolution, helping you maintain compliance and minimize business disruption.

Table of Contents

• Understanding Certificate of Insurance Errors
• Step-by-Step: What to Do When a Certificate Has Errors
• Best Practices for Handling Certificate Errors
• Common Mistakes When Addressing Certificate Errors
• Key Takeaways
• Frequently Asked Questions

Understanding Certificate of Insurance Errors

Before addressing what to do when a certificate has errors, it's important to understand what these errors typically look like. Certificate of insurance errors can range from minor typos to major coverage discrepancies that expose your business to significant risk.

Common Types of Certificate Errors

• Incorrect policy limits - Coverage amounts that don't meet contractual requirements

• Missing additional insured endorsements - Failure to list your organization as an additional insured

• Expired coverage dates - Policies that have lapsed or show incorrect effective periods

• Incorrect named insured - Wrong business entity listed on the certificate

• Missing required coverage types - Absence of workers' compensation, auto liability, or other mandated insurance

• Incorrect or missing certificate holder information - Your organization's details are wrong or absent

When a certificate has errors like these, you need to act quickly. These discrepancies aren't just administrative issues—they represent potential gaps in protection that could lead to uninsured losses and liability exposure.

The Impact of Certificate Errors

Certificate errors can lead to serious consequences for your organization:

• Uninsured or underinsured losses
• Contract violations with clients or partners
• Project delays while waiting for corrected certificates
• Compliance failures with regulatory requirements
• Legal liability if work proceeds without proper coverage

Step-by-Step: What to Do When a Certificate Has Errors

When you discover errors on a certificate of insurance, follow this systematic approach to resolve them efficiently and maintain proper coverage.

Step 1: Thoroughly Review the Certificate

Begin by carefully examining the entire certificate against your requirements:

• Compare policy limits to your contractual requirements

• Verify all required coverage types are included

• Check that policy effective dates cover your project timeline

• Confirm the named insured matches your vendor/contractor's legal name

• Ensure your organization is correctly listed as certificate holder

• Verify additional insured status is properly indicated

Use a checklist to systematically identify all errors rather than stopping after finding the first issue. Document each discrepancy clearly for the next step.

Step 2: Document All Errors

Create a detailed record of all certificate errors:

1. Take screenshots or make copies of the incorrect certificate

2. Create a specific list of each error and what needs to be corrected

3. Reference your contract requirements for each correction needed

4. Note the date you identified the errors

This documentation serves multiple purposes: it creates a clear communication tool for requesting corrections, establishes a paper trail for compliance purposes, and helps prevent the same errors from recurring in future certificates.

Step 3: Contact the Certificate Holder

Reach out to your vendor or contractor about what to do when a certificate has errors:

• Send an email detailing all errors and required corrections

• Include your documented list of errors and contract requirements

• Specify a deadline for receiving the corrected certificate

• Explain any work restrictions that will apply until corrections are made

Be clear but professional. Remember that the certificate holder may need to work with their insurance agent or broker to make these corrections, which can take time.

Step 4: Communicate with the Insurance Agent or Broker

For faster resolution, consider direct communication with the insurance provider:

1. Ask your vendor for permission to contact their agent directly

2. Call the agent listed on the certificate to discuss the errors

3. Follow up with an email summarizing the call and requested changes

4. Copy your vendor on all communications with their agent

Insurance agents can often make simple corrections quickly, especially for administrative errors. For more substantial changes like increased coverage limits, the process may take longer and require action from the insured party.

Step 5: Verify Policy Endorsements

For certain errors, particularly those related to additional insured status, you need to go beyond the certificate itself:

• Request copies of actual policy endorsements that name your organization

• Verify waiver of subrogation endorsements if required

• Confirm primary and non-contributory wording in endorsements

• Check that endorsement numbers match those referenced on the certificate

Remember that the certificate itself is not proof of coverage—it's merely evidence that policies exist. The actual endorsements are what provide you with the contractual protections you require.

Step 6: Implement Temporary Risk Management Measures

While waiting for certificate corrections, you may need to take interim steps:

• Delay the start of work until critical coverage issues are resolved

• Consider a limited work authorization with restricted scope

• Implement additional safety protocols or supervision

• Document your risk mitigation efforts in case of future claims

These temporary measures help balance business continuity with risk management while you work through what to do when a certificate has errors.

Step 7: Review the Corrected Certificate

Once you receive the updated certificate:

1. Verify that all previously identified errors have been corrected

2. Check that no new errors were introduced during the correction process

3. Confirm all policy numbers, dates, and coverage limits match requirements

4. Document receipt of the corrected certificate and any endorsements

Don't assume all corrections were made properly. Take the time to thoroughly review the new certificate against your original requirements and the list of errors you identified.

Step 8: Update Your Certificate Tracking System

Finalize the process with proper documentation:

• File the corrected certificate in your tracking system

• Update expiration dates and renewal requirements

• Note any special conditions or endorsements for future reference

• Set up automated reminders for future certificate renewals

Using a dedicated certificate management system like CoverLedger can significantly streamline this process, automatically flagging errors and tracking corrections.

Best Practices for Handling Certificate Errors

Follow these expert recommendations to improve your approach to what to do when a certificate has errors:

Establish Clear Insurance Requirements Upfront

Prevent certificate errors by setting explicit expectations:

• Include detailed insurance requirements in all contracts

• Provide vendors with a sample certificate showing exactly what you need

• Specify required endorsements and special wording

• Share these requirements before work begins or contracts are signed

By communicating requirements clearly from the start, you reduce the likelihood of receiving certificates with errors and streamline the correction process when issues do arise.

Implement a Standardized Review Process

Consistency is key to catching and addressing certificate errors:

• Create a standardized checklist for certificate review

• Train multiple team members on proper certificate verification

• Establish service level agreements for certificate processing times

• Consider implementing automated certificate tracking software

Maintain Positive Vendor Relationships

How you handle certificate errors can impact your business relationships:

• Approach errors as collaborative problems to solve, not accusations

• Educate vendors on why specific requirements matter to your organization

• Recognize that some corrections may require policy changes that take time

• Offer assistance in understanding complex insurance requirements

Document Everything

Thorough documentation protects your organization:

• Keep records of all communications about certificate errors

• Save both incorrect and corrected certificates

• Document any temporary risk management measures implemented

• Maintain a log of common errors to identify patterns with specific vendors

This documentation creates a compliance trail and helps you improve your certificate management processes over time.

Common Mistakes When Addressing Certificate Errors

Avoid these pitfalls when determining what to do when a certificate has errors:

Accepting Certificates at Face Value

One of the biggest mistakes organizations make is not looking beyond the certificate itself:

• Certificates are not insurance policies—they're summaries of coverage

• The certificate disclaimer explicitly states it confers no rights

• Always request and review actual endorsements for critical coverages

• Be particularly skeptical of handwritten additions to certificates

Allowing Work to Begin Before Corrections

Business pressures often lead to this critical mistake:

• Starting work with incorrect insurance creates immediate liability exposure

• Once work begins, leverage to obtain corrections diminishes significantly

• If an incident occurs, your organization may be financially responsible

• Contract requirements for insurance become harder to enforce after work starts

Failing to Track Certificate Renewals

The correction process doesn't end with a fixed certificate:

• Policies expire, creating new compliance gaps

• Coverage can change at renewal, introducing new errors

• Vendors may change insurance carriers, affecting endorsements

• Set up automated renewal tracking to prevent coverage lapses

Inconsistent Certificate Management

Ad-hoc approaches lead to compliance gaps:

• Different departments handling certificates differently creates inconsistency

• Manual tracking systems are prone to human error

• Scattered storage of certificates makes verification difficult

• Implement a centralized, standardized certificate management system

Key Takeaways: What to Do When a Certificate Has Errors

• Act immediately when certificate errors are discovered—delays increase liability exposure

• Document all errors thoroughly with specific references to contract requirements

• Communicate clearly with vendors and their insurance providers about needed corrections

• Request actual policy endorsements, not just corrected certificates

• Implement temporary risk management measures while waiting for corrections

• Verify all corrections have been properly made before proceeding with work

• Use automated certificate tracking systems to prevent future errors and manage renewals

• Establish clear insurance requirements upfront to minimize certificate errors

Frequently Asked Questions About Certificate Errors

How quickly should certificate errors be addressed?

Certificate errors should be addressed immediately upon discovery. The longer incorrect certificates remain unresolved, the greater your organization's liability exposure. Critical errors affecting coverage limits, additional insured status, or policy exclusions should be corrected before any work begins. For ongoing relationships, establish a specific timeframe (typically 5-10 business days) for vendors to provide corrected certificates, with clear consequences for non-compliance, such as work stoppage or payment holds.

Can I accept a certificate with minor errors if the major coverage requirements are met?

While it may be tempting to overlook minor errors, even small discrepancies can create significant liability issues. Typographical errors in company names, policy numbers, or dates might seem inconsequential but can invalidate coverage or create defense complications during claims. The best practice is to require correction of all errors, regardless of perceived severity. If business necessities require proceeding with work before all minor errors are fixed, document your risk assessment and decision process thoroughly, and continue pursuing corrections.

What's the difference between a certificate error and a coverage gap?

A certificate error is a discrepancy between what's shown on the certificate and what's required by your contract or risk management standards. These can often be corrected through administrative updates. A coverage gap, however, indicates that the vendor's actual insurance policies don't provide the protection required. Coverage gaps typically require policy amendments, additional premium payments, or new insurance products. When addressing what to do when a certificate has errors, it's crucial to determine whether you're dealing with documentation issues or fundamental coverage shortfalls.

How can I verify that additional insured status is properly in place?

The only reliable way to verify additional insured status is to request and review the actual policy endorsement. Certificates of insurance may indicate additional insured status, but they don't confer rights or amend policies. Request a copy of the specific endorsement naming your organization, and verify it contains the correct legal entity name, applies to the appropriate policies, and includes any required wording (such as primary and non-contributory status). Some vendors may be reluctant to share policy documents, but this verification is essential for proper risk transfer.

What tools can help manage certificate compliance and error detection?

Specialized certificate of insurance tracking software like CoverLedger can dramatically improve error detection and compliance management. These platforms automate the review process, flag discrepancies between requirements and submitted certificates, track correction requests, and manage renewal timelines. Advanced systems use AI to extract data from certificates, compare against requirements, and generate correction requests automatically. For organizations managing hundreds or thousands of certificates, these tools significantly reduce administrative burden while improving compliance rates and risk management outcomes.

Conclusion

Knowing what to do when a certificate has errors is essential for protecting your organization from unintended liability and ensuring proper risk transfer. By following the systematic approach outlined in this guide—from thorough review and documentation to communication with vendors and verification of corrections—you can effectively manage certificate errors while maintaining business relationships and operations.

The most successful organizations treat certificate management as a critical risk management function, not just an administrative task. They implement standardized processes, leverage technology solutions, and maintain clear communication with all stakeholders about insurance requirements and compliance expectations.

Remember that certificate errors are often symptoms of broader insurance compliance challenges. Addressing the immediate errors is important, but developing robust systems to prevent future errors is equally valuable. Consider how automated certificate tracking solutions like CoverLedger can transform your approach to insurance compliance, reducing errors while saving time and resources.

Get started with automated insurance compliance today and see how CoverLedger works - schedule a demo to learn how our platform can streamline your certificate management process and help you respond effectively when certificates have errors.