A general contractor won’t let your crew on site, a landlord is holding the keys, or a client won’t release payment until they see a certificate of insurance. Knowing what the certificate shows, and what the contract is actually asking for, helps you get the right document the first time.
What a certificate of insurance is
A certificate of insurance, most often an ACORD 25 for liability coverage, is a one-page summary of the policies you carry: insurers, policy numbers, dates, and limits. It is evidence of coverage, not the coverage itself. The certificate generally does not change the policy, so what the contract requires must actually exist in the policy through endorsements.
Common contract terms, in plain English
These requirements come up most often in construction, property management, and service contracts.
- Additional insured: extends certain coverage under your policy to the client, GC, or owner for claims arising from your work. Usually added by endorsement.
- Waiver of subrogation: your insurer agrees not to pursue the other party to recover a claim it paid. Often required on general liability, auto, and workers’ comp.
- Primary and non-contributory: your policy responds first, before the other party’s insurance, without asking them to share the loss.
- Certificate holder: the person or company receiving the certificate. Being a certificate holder alone does not make someone an additional insured.
- Notice of cancellation: some contracts ask to be notified if coverage is canceled; insurers handle this in different ways.
Why certificates get rejected
Most delays come from a mismatch between the contract’s insurance section and the policy.
- Limits are lower than the contract requires, or no umbrella is shown.
- Additional insured, waiver, or primary wording is missing or the endorsement doesn’t exist on the policy.
- The certificate holder’s legal name or address is wrong.
- A policy has expired or is near renewal.
- Required coverage, such as workers’ comp or auto, isn’t listed.
How to get a certificate issued without delays
Send your broker the contract’s insurance section, not just the certificate holder’s name. That lets the broker check whether the required endorsements are already on your policy or need to be added by the insurer.
Review insurance requirements before you sign a contract or bid a job. Adding endorsements or raising limits may involve the insurer and additional premium.
Collecting certificates from your subcontractors
If you hire subcontractors, collect current certificates and the endorsements your contracts require before they start work. Uninsured subcontractors can be added to your workers’ comp and liability premium at audit, and a claim from their work may land on your policy.
Common questions
- How do I get a certificate of insurance?
- Your insurance broker or agent issues certificates. Send the certificate holder’s details and the contract’s insurance requirements so the certificate reflects what is actually needed.
- Does a certificate make someone an additional insured?
- No. Additional insured status comes from an endorsement on the policy. The certificate only summarizes it.
- What is an ACORD 25?
- It is the standard form used to summarize liability coverage, including general liability, auto, umbrella, and workers’ comp.
Related
Coverage availability, terms, conditions, exclusions, and pricing vary by insurer and underwriting. This information is general and is not a representation of coverage under any specific policy. This article is educational and is not legal, tax, or risk-management advice.