Certificates of Insurance Subcontractor Requirements

Note: This procedure is a simple way for you to request certificates of insurance from your customers, subcontractors and independent contractors.

Certificates of Insurance Requirements

-- Note to Employees

Note: All contractors, subcontractors and independent contractors working for us must provide certificates of insurance before starting work. This includes plumbers, painters, landscaping, electricians, roofers, repair people, vendors, cleaning companies, snowplow contractors, and the like.

A certificate of insurance provides us with evidence that an outside contractor, vendor, or customer has the financial backing of an insurance policy to protect us against claims arising out of their negligence. If we are named as an additional insured on a contractor’s liability policy we will also be defended by their insurance policy(s) shown on the certificate.

Certificates of insurance should be obtained whenever we hire a contractor or subcontractor to work on our property or for one of our customers.

To obtain a certificate of insurance provide the contractor or vendor with an Insurance Requirements Form (below), along with instructions to give the form to their insurance agent to handle. Retain a copy of the insurance requirements form in your files to use as a follow-up until receipt of the certificate.

When the certificate is received, review it to be sure it meets our requirements. Our company must be named as an additional insured to provide defense under the insurance policy(s) listed on the certificate.

If the certificate is needed on an on-going basis, follow up on replacement certificates prior to the expiration dates shown on the certificates.

TIPS for reviewing Insurance Certificates when supplied by an outside contractor, vendor or customer:

  • Our company should be shown as the certificate holder and shown as an additional insured.

  • Coverage applies only during the policy period shown on the certificate. You must follow up with the contractor or vendor regarding a renewal certificate, if applicable, prior to the expiration date.

  • Be sure that general liability, automobile liability (when appropriate) and workers compensation coverage’s are included on the certificate. A separate certificate is often supplied for workers’ compensation.

  • Limits for general and automobile liability should ordinarily be at least $x million. You can specify higher limits if justified by the hazard of the operation. Lower limits should be referred to for approval.

  • Certificates should be retained on file for 60 months following expiration of the policy or the contract.

Insurance Requirements for Outside Contractors, Vendors, or Customers

_________________ (hereinafter “Contractor”) agrees to indemnify and hold harmless and any and all related or affiliated parties who may have an ownership interest in the property (hereinafter “OEI”) at which Contractor is providing services, harmless for all claims for property damage and/or damage for personal or bodily injury, including death, which may arise from acts by Contractor, its agents or associates, and its subcontractors and their agents and associates. Contractor agrees to maintain adequate insurance, in form and with companies acceptable to us, to insure against the aforesaid, as follows;

Type of Insurance

Minimum Limits

Workers’ Compensation

Statutory Limits

General Liability (including contractual liability, completed operations, and contingent liability for acts of subcontractors)

$x,000,000 each occurrence

$x,000,000 aggregate

$x,000,000 products/completed operations aggregate

Automobile Liability


Umbrella Liability Coverage

$x,000,000 each occurrence / aggregate

If excavation work is to be completed, no policy may exclude excavation, collapse, or explosion.

Insurance companies must hold a “Best Rating” of A- or better.

The insurance coverage provided hereunder shall be primary to and non-contributory with any other available insurance of ours. Contractor’s general liability and automobile liability insurance policies shall name us as additional insureds, and shall provide us with a 30-day notice of cancellation. Certificates of Insurance evidencing the above shall be forwarded in advance of any work to:

Contact Name

Your Company Name

Your Address

Your City, State Zip

Your Phone

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About Scott Simmonds

Scott lives in Maine where he runs a successful nationwide insurance consulting firm. He has worked with over 1,000 businesses in his 30 year career.

Scott consults on with banks and other businesses on insurance issues. His articles and advice have appeared in Forbes, Fortune, Investors Business Daily, Kiplinger’s, Money, The Wall Street Journal, and countless trade and association publications.

Simmonds does not sell insurance. He provides his clients with unbiased insurance advice.

He can be reached at 207-284-0085 or Scott@ScottSimmonds.com.


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