How_to__Review_a_Certificate_of_Insurance_(COI)_.pdf
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- Attached to
- Boston Pre-K Community-Based Providers
- Solicitation number
- EV00017868
- Issued by
- Suffolk County, Massachusetts
About this file
This is an instructional guide issued by the City of Boston's Office of Budget Management, Risk Management division, detailing the requirements for reviewing a Certificate of Insurance (COI) form submitted by vendors contracting with the city. The guide provides comprehensive instructions for evaluating ACORD 25 COI forms to ensure vendor compliance with the city's insurance specifications. Key elements that must be verified on the certificate include the vendor's legal company name as the insured party, current issue date (less than three months old), insurance company names with National Association of Insurance Commissioners (NAIC) numbers, all required types of insurance coverage, policy form type (Claims Made or Occurrence), policy effective and expiration dates that align with the contract period, policy limits meeting or exceeding contract requirements, policy numbers for each coverage, and authorized representative signature. The City of Boston must be named as the Certificate Holder and Additional Insured on all applicable liability policies as specified in bid documents.
The guide establishes detailed definitions for critical insurance terms, including Claims Made versus Occurrence policy forms, policy limits (per claim, per occurrence, and aggregate), Additional Insured Endorsements, Waiver of Subrogation requirements in favor of the City of Boston, and Notice of Cancellation provisions. Vendors must ensure that their insurance carriers provide at least thirty days written notice in the event of policy cancellation, non-renewal, or material changes in coverage during the contract term. The document notes that Professional Liability policies generally cannot add Additional Insured endorsements unless the additional insured is an employee or subsidiary of the primary insured, and directs vendors with questions to contact Peggy Zhang, Risk Finance Manager, at peggy.zhang@boston.gov. This guide serves as a standardized tool for the city to verify that vendors maintain adequate insurance protection and comply with all contractual insurance obligations.
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Insurance Company or Broker Company Address City, State, Zip
PRODUCER
Insurer, agent, or broker issuing the certificate
Vendor Company Name Company Address City, State, Zip
INSURED
Must be the legal name of the vendor contracting with the City of Boston
12/01/2025
CERTIFICATE
ISSUE DATE
Must be current, less than 3 months old
John Doe
(123) 456-7890 john.doe@insurancecompany.com
CONTACT
Point of contact for the certificate producer
Insurance Company A ##### Insurance Company B ##### Insurance Company C ##### Insurance Company D #####
INSURER(S)
Insurance companies’ names and National Association of Insurance Commissioners (NAIC) numbers must be listed for each policy
TYPE OF INSURANCE
Must include all types of insurance required by the contract, as specified in the bid document
POLICY FORM
“Claims Made” or “Occurrence” must match what is required by the contract, as specified in the bid documents (see detailed definitions on page 2)
POLICY EFFECTIVE &
EXPIRATION DATES
Policies must be effective for the period of the contract (see detailed definitions on page 2)
ADDITIONAL
INSURED
The City of Boston must be named as Additional Insured for policies as specified in the bid documents (see detailed definitions on page 2)
POLICY LIMITS
Listed in this column, must be the same or greater than required by the contract, as specified in the bid documents (see detailed definitions on page 2)
The City of Boston must be named as Additional Insured for all policies as specified in the bid document
Vendor can list additional information like City contract number, Event Bid number (EV000XXXXX), or City contracting department to help with certificate tracking
CERTIFICATE HOLDER
Must be the City of Boston, as the entity requesting proof of insurance
DESCRIPTION OF
OPERATIONS
Vendor can note Additional Insured details, other lines of insurance, and information like City contract number, Event Bid number, and City contracting department to help with certificate tracking AUTHORIZED REPRESENTATIVE
Must be signed by an authorized representative for the producer
City of Boston ATTN: Department (optional) 1 City Hall Square Boston, MA 02201
OTHER LINES OF
INSURANCE
Must list other types of insurance required by the contract, as specified in the bid documents
Examples:
PROFESSIONAL LIABILITY
CYBER LIABILITY POLICY NUMBER
Each policy number must be listed
123456789
ABCD12345
XYZ987654
987654321
WAIVER OF
SUBROGATION
Must be included in favor of the City of Boston (see detailed definitions on page 2)
Office of Budget Management, Risk Management
HOW TO: REVIEW A CERTIFICATE OF INSURANCE (COI) FORM
What is this guide? This guide outlines how to review an ACORD 25 Certificate of Insurance (COI) form for completeness. More information about insurance requirements for contracts can be found here. If you have questions about insurance, contact Peggy Zhang, Risk Finance Manager in the Office of Budget Management, at peggy.zhang@boston.gov.
What is a COI? A vendor’s insurance agent or broker issues a COI to provide verification of compliance of insurance specifications, along with any endorsements that may be needed to comply with your procurement requirements. This certificate serves as evidence that the insured (vendor) has the financial ability to respond to a claim that may arise. The certificate confers no rights upon the certificate holder, and does not amend, extend, or alter the coverage afforded by the policies. More information about the ACORD 25 form and other insurance certificate forms can be found at www.acord.org.
JOHN DOE
CANCELLATION
Insurance company must notify the City if a policy is cancelled (see detailed definitions on page 2) https://docs.google.com/presentation/d/1F04uTVMIs207M_fdFrR3Z9R-BhcQQ_b6jnoDYtVmmpo/edit?slide=id.g391945bc9f4_1_0#slide=id.g391945bc9f4_1_0 http://www.acord.org
DETAILED DEFINITIONS
POLICY FORM: Determines whether a policy covers incidents based on date of claim or date of incident
1. Claims-Made: An insurance policy that provides coverage for claims only if the claim is reported during the policy term; a retroactive date may also impact if a claims is covered or not
2. Occurrence: An insurance policy that provides coverage for claims arising from incidents that occur during the policy period, regardless of when the claim is actually reported or filed
On the COI: “Claims Made” or “Occurrence” must match what is required by the contract, as specified in the bid documents.
POLICY LIMIT: Determines how much is covered under a policy (more information about the City’s recommended insurance limits and types can be found here)
1. Per Claim Limit: The maximum amount an insurance policy will pay for all claims resulting from a single claim
2. Per Occurrence Limit: The maximum amount an insurance policy will pay for all claims resulting from a single incident or event that occurs during the policy period
3. Aggregate Limit: The maximum amount an insurance policy will pay for all covered loss during a specified policy period;
once the aggregate limit is reached, the insurer will not pay any further claims for that policy period
On the COI: Policy limits must be the same or greater than required by the contract.
POLICY EFFECTIVE & EXPIRATION DATES: The start and end dates of the policy
● Policies must be effective for the period of the contract. If a policy will expire before the end of the contract period, the vendor must submit a new certificate when their current policy expires.
● Vendors are responsible for providing a new COI each policy year.
ADDITIONAL INSURED ENDORSEMENT: Addendum to an insurance policy that extends certain coverage to another organization, for liabilities arising from the primary policyholder’s activities or operations
● The City of Boston must require being named as an additional insured on relevant liability policies if the vendor is working on the City’s behalf, directing or controlling the work of City employees in a situation where injury or harm might result, or if the vendor is renting or utilizing a space owned by the City. This endorsement provides the City another layer of protection.
● Note about Professional Liability: With some exceptions, insurers generally do not add another entity as additional insured to a professional liability policy unless they are employees or subsidiaries of the primary insured entity, due to the specialization of this type of policy. If you are unsure whether this applies to your contract, contact peggy.zhang@boston.gov.
On the COI: The City of Boston must be named as Additional Insured for policies as specified in the bid documents.
WAIVER OF SUBROGATION: Insurance company agrees not to pursue a third party (like the City of Boston) for money after paying a claim for their insured (City vendor)
● Subrogation: An insurance company’s right to step into the shoes of an insured party to seek reimbursement from a third, at-fault party after paying a claim
○ If subrogation is not waived, the vendor’s insurance company can look for reimbursement of any claim payments they have made if they believe the City’s negligence contributed to their financial loss.
On the COI: Waivers of subrogation must be included in favor of the City of Boston.
NOTICE OF CANCELLATION: Notification from an insurance company if a policy is cancelled
● The City’s insurance requirements in the bid documents should require at least thirty days written notice in the event of insurance policy cancellation, non-renewal, or material changes in coverage during the term of the contract.
Office of Budget Management, Risk Management 2 https://docs.google.com/presentation/d/1F04uTVMIs207M_fdFrR3Z9R-BhcQQ_b6jnoDYtVmmpo/edit?slide=id.g391945bc9f4_1_27#slide=id.g391945bc9f4_1_27
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