A Certificate of Insurance refers to the formal document of any insurer that verifies that a person or a company is insured correctly. It contains the name of the policyholder, the kind of coverage, the limits of coverage, policy number and the dates of effectiveness. Companies are usually demanding a COI prior to dealing with contractors to be able to protect the risks. As an example, a certificate of insurance is requested by landlords, the owners of projects and the hosting of events to ensure that the financiers are not liable in case of any mishaps. It is not the insurance contract but rather a cursory document of active coverage. It will avoid conflicts and safeguard all the interested parties in a transaction.