Understanding the “Description of Operations” Field in a Certificate of Insurance

The Description of Operations section on a Certificate of Insurance (COI) is designed to provide a brief summary of the coverage being provided and to identify who or what is being afforded that coverage. This field can also include project-specific or location-specific details, depending on the requirements of the client or contract.

While this section is often used to convey important information, it must be completed with great care to avoid misrepresenting the scope of coverage. This section must be filled out by the insurance agent and not the business. COIs are invalid if modified by the business. 

What Belongs in the Description of Operations?

This section may include:

• A summary of the types of coverage (e.g., General Liability, Auto Liability)

• Identification of who is being covered (e.g., named Additional Insureds)

• Relevant project names or job site addresses

• Policy references (e.g., AI endorsement numbers or form types)

Important Caution: Risk of Misrepresentation

There is growing concern and regulation across many U.S. states regarding the accuracy of the language used in this field. While it may seem helpful to include detailed assurances, insurance agents must avoid overstating or implying guarantees of coverage that are not fully supported by the actual insurance policy.

Why this matters:

• A COI is not an insurance contract.

• Even if endorsements are listed or entities are named as Additional Insureds, actual coverage depends on specific policy terms and claim circumstances (e.g., negligence, scope of operations, exclusions).

• If an agent includes misleading or inaccurate descriptions, they could be held liable if a claim is later denied.

VIVE Compliance Guidance

VIVE clients may request certain language in this section to meet internal risk requirements. However, we recommend:

• Letting the insurance carrier or agent draft and approve all Description of Operations text.

• Verifying that any statements align with the endorsements and limits shown on the COI.

• Avoiding statements like “will be covered” or “all operations are insured,” unless explicitly supported by the policy.

Sample Acceptable Entry

“[Client Legal Name] is included as an Additional Insured on a primary and non-contributory basis, as required by written contract. Coverage applies to work performed at [project location]. See attached endorsement forms.”

This type of language reflects standard compliance without overpromising coverage outcomes.

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