Certificate of Insurance (COI)
A Certificate of Insurance (COI) is a document that evidences insurance cover for a specific shipment, typically issued under an open (or floating) marine cargo policy that covers many shipments over time. Rather than issue a full policy for each consignment, the insured declares each shipment against the open cover and receives a certificate confirming that particular cargo is insured, for what value and on what terms.
The certificate states the insured goods, voyage, sum insured and conditions (such as the Institute Cargo Clauses applied), and is often required as part of the documentary set under a letter of credit or by the buyer as proof the goods are covered. Being frequently negotiable/transferable, it can pass with the goods so that whoever bears the risk can claim. The COI is the everyday proof-of-cover document in cargo insurance, linking a general policy to an individual shipment.
Buyers, banks and letters of credit routinely demand proof that a shipment is insured — the certificate of insurance provides it without issuing a whole policy each time. It ties an open cover to the individual consignment and, being transferable, lets the risk-bearer claim. It is the practical paperwork that makes cargo insurance work shipment by shipment.
What is an open cover?
A standing marine policy covering many shipments over a period; each shipment is declared against it and a certificate of insurance is issued.
Why is a certificate of insurance needed?
As proof of cover for a specific shipment, often required under a letter of credit or by the buyer.