Certificate of Insurance (COI)

A certificate of insurance is the shipper's verification that a carrier is financially covered before freight is tendered. It's a standard document issued by the carrier's insurer – not the carrier itself – and confirms the types of coverage held, policy numbers, effective dates, and coverage limits. Shippers request COIs as part of carrier onboarding and typically require them to be refreshed annually or whenever policies renew.

The key coverage lines on a COI for freight carriers are auto liability (covering accidents involving the truck), motor truck cargo insurance (covering damage to or loss of the freight being hauled), and general liability. Shippers set minimum thresholds for each – commonly $1 million for auto and general liability, and $100,000 to $250,000 for cargo, though high-value or temperature-sensitive freight often demands higher limits. The COI also shows whether the shipper is listed as an "additional insured" or "certificate holder," which matters for claims purposes.

COI management is a compliance necessity that becomes an operational burden at scale. Every carrier in your network needs a current COI on file, and policies lapse, renew on different schedules, and occasionally get cancelled. Shippers who don't track expirations risk tendering loads to carriers with lapsed coverage – a significant financial and legal exposure. For food and beverage shippers, many retail customers and 3PLs also require proof that your carriers meet specific insurance thresholds as a condition of doing business.

The best practice is to centralize COI collection and set automated expiration alerts so no carrier falls through the cracks. Carrier vetting platforms and TMS systems increasingly automate this by flagging carriers whose coverage has lapsed before they can be assigned a load.