Certificates of insurance are part of a contractor’s daily life, and they cause more confusion than almost any other document. Here is what they do and how to handle them.
What a certificate is
A certificate of insurance summarizes your coverage, carrier, coverage types, limits, and dates, as of the day it is issued. It is useful evidence that coverage was in place at that moment, and clients, GCs, and property managers ask for one before you start work.
What it is not
A certificate is not a contract, and it grants the holder no coverage. Your policy can change the day after the certificate is issued, and the certificate will not say so. Most importantly, receiving a certificate does not make a party an additional insured; that comes from an endorsement on your policy. Treating the certificate as the protection is the most common risk-transfer mistake in construction.
Handling requests
When a client or GC asks for a certificate, you need three things: who needs it, the exact wording or contract requirement, and the deadline. Standard certificates can be issued quickly. Requests for special wording, additional insured status, waiver of subrogation, or primary and noncontributory, may require an endorsement, carrier approval, a policy change, or additional premium, so the requirement should be confirmed before the job is held up.
Requiring them from subs
The same logic applies when you collect certificates from subcontractors. Verify the additional insured endorsement behind the certificate, not just the certificate itself, and keep the coverage current for the duration of the work. An uninsured or under-endorsed sub becomes your exposure.
When a requirement is complex or a deadline is tight, a contract review confirms your coverage actually delivers what the certificate promises, so you can sign and start with confidence.