Why a Certificate of Insurance May Not Meet Your Contract Requirements

You have a job lined up, and the customer asks for proof of insurance. You provide a certificate, but the paperwork still does not meet their requirements. What needs to be checked?

Start with the insurance section of the contract. A certificate of insurance, usually called a COI, summarizes insurance information. Florida's Department of Financial Services explains that certificates generally serve as evidence of insurance. The certificate itself does not add coverage or change the policy. Florida DFS: Certificate of Insurance guidance

For Florida contractors, the next step is to compare what the job requires with what the policy actually provides.

Check the basics first

Look at the named insured, coverage types, limits, effective dates, expiration dates, and insurance company information. Does the insured business match the legal entity doing the work? Do the listed limits meet the contract's requirements? Will a renewal occur during the project?

Also confirm the certificate holder's correct name and address. That field identifies the party receiving evidence of insurance; it does not, by itself, make that party an additional insured. A COI also does not guarantee coverage for a particular claim. Travelers: What Is a Certificate of Insurance?

Ask about additional insured requirements

A contract may require a property owner, general contractor, or another party to have additional insured status under your policy.

That status needs to come from the policy's provisions or an applicable endorsement. Adding a name to the certificate cannot create it. Ask your agent which provision or endorsement applies, what it covers, and whether its conditions are satisfied. If the contract requests an endorsement copy, include that in the review. Travelers: Contractual Risk Transfer

Review any waiver of subrogation request

You may also see a requirement for a waiver of subrogation. This concerns the insurer's right to seek recovery from another party after a payment, subject to the policy's terms.

Ask whether the required waiver is already provided or can be added. Some coverage forms include it; others may need an endorsement. Carrier terms, availability, and the conditions attached to the waiver matter. Do not assume the contract's wording automatically changes your insurance. The Hartford: General Liability Choice coverage summary

Give your agent the requirements before work begins

Have these details ready:

• The contract's insurance requirements and any requested endorsement forms.
• Your business's legal name and a description of the work.
• The job location, expected start date, and documentation deadline.
• The requesting party's exact name and contact information.

This gives your agent something specific to compare with your coverage. If there is a mismatch, ask what options are available rather than assuming the certificate can fix it. Questions about your legal obligations under the contract belong with your attorney.

Need help with an upcoming job's insurance requirements? Contact the Insurance Chick team. Tell us what work you do and when the project starts, and have the requirements ready for review.

General educational information, not legal advice or a guarantee of coverage. Coverage is subject to the issued policy's terms, conditions, exclusions, and applicable endorsements. Coverage cannot be bound, changed, or canceled through this website.