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Liability Insurance Certificates For Contractors

 

In this day of lawsuits over the temperature of a cup of coffee, many contracting clients are requesting a liability insurance certificate from contractors as a requirement to bid on a project.  These certificates have become more standardized since the 1970’s as insurance carriers and brokers are providing them more and more.

Liability insurance certificates provide a wealth of information quickly because asking a contractor to provide copies of their insurance policies would be overwhelming and costly. Insurance policies also contain proprietary business information such as insurance premiums, rates and business volumes that are inappropriate for disclosure to third parties. 

Certificates of insurance provide a valuable service in summarizing a tremendous amount of information on a single sheet of paper for the benefit of review by the requestor of the certificate.

The liability insurance certificates for contractors are import.  Having liability insurance in place means the client and their business are protected from being held liable for injury or error.  This includes damage to property as well as to people as well as implied damages.  It is important to remember that liability insurance covers the cost of litigation for these claims as well as any awards issued by the court.

Obviously, it also benefits the contractor by having this insurance coverage in place in addition to the coverage.   By having a current certificate of liability insurance for contractors on hand, it can give your business a leg up in the bid turn around and professional look you bring to the potential client.

Ask your licensed insurance professional for a current copy of your liability insurance certificate.  It’s also a good chance to review your policy limits and whether they should be increased to go after larger jobs in your construction market.