CERTIFICATES OF INSURANCE 

Construction liability insurance can be difficult for many subcontractors to obtain.  To help verify that your subcontractor has in fact obtained the required insurance, it is essential that you obtain certificates of insurance from each subcontractor prior to their starting work.  A correctly completed certificate of insurance should include the following:

 §         Name of Insurance Company

§         Policy number, effective dates, and adequate limits of insurance*. Coverage should indicate “occurrence”, not “claims made”

§         Job description or “any and all jobs”

§         Your company named as an “additional insured”

You should be aware that certificates of insurance do not prove what risks are covered or excluded by the subcontractor’s policy, nor do they generally require that you be notified if the subcontractor’s policy is cancelled.  For added protection, you may wish to obtain the certificates directly from the subcontractor’s agent, have your attorney examine the subcontractor’s policy, and/or have the subcontractor’s agent note on the certificate that you will be provided actual notice in the event that the policy is cancelled.  For subcontractors used on a frequent basis, new certificates of insurance should be obtained annually.

* Insurance Requirement, including minimum limits – This requires your subcontractor to carry sufficient liability insurance to allow them to protect you in the event of a lawsuit.  You should ask for minimum limits not less than those provided by your own insurance policy.