Tenant Certificate Of Insurance Gap Calculator

COI lapses create exposure. This calculator sizes.

Tenant count

Compliant COI %

Avg claim size

Annual claim probability %

Prob-weighted exposure

$213,750

Non-compliant tenants

Annual expected loss

$71,250

How the math works

Non-compliant = tenants × (1 − compliant %). Expected loss = non-compliant × probability × avg claim.

19 non-compliant tenants at 2.5% annual claim rate × $150k avg claim = $71k annual expected loss. Closing gap via compliance tech saves 10-20x cost of software. Biggest portfolio-wide risk management win is often basic COI compliance.

How to Use

Enter tenant count.
Enter % with compliant COI.
Enter avg claim size if uninsured.
Enter annual claim probability %.
Read probability-weighted exposure.

Frequently Asked Questions

Why matter?

Tenant's COI makes landlord additional insured on tenant's policy. If tenant's operations cause loss to visitor, tenant's insurer defends landlord. Without current COI, landlord's policy responds first — paying deductible and experiencing premium hit.

Compliance rate?

Industry standard: landlord tracks COIs at renewal, expiration, and upon request. Compliance rate: 70-85% current; 15-30% have gaps. Lapses trigger lease default but landlords rarely enforce over minor lapses. Risk: uninsured period can be months.

Best practice?

Automated COI tracking software (Jones, RiskCONsult, etc.). 30/60/90 day reminder before expiration. Default notice if uncovered 30+ days. Property management fee allocation for compliance staff. Institutional landlords: 95%+ compliance standard.