Whether you are signing a contract for a job, a vendor agreement, or a lease for a new office space, a certificate of insurance is usually required. A certificate of insurance provides your other party with proof of your insurance and how much your limits are.
For example, a general contractor on a project site will demand a certificate of insurance from all of the other parties (subcontractors) that will be on that job site before he hires them so he knows that they have the adequate insurance coverage and limits to cover a potential loss or claim.
The requirements for the certificate of insurance are usually outlined in the general contract or the subcontract for the job or project. This section of the contract will display the limits and coverage that are required from all parties that will be on the particular jobsite.
As an insurance agency, we encourage all our clients to let us know of the certificate of insurance requirements immediately. That way, if the job requires additional coverage, we can endorse your policy so that it meets the requirements accordingly.
Of course, sometimes opportunities do present themselves at the last minute. And as most business owners know, when an opportunity presents itself it is important to seize it and not let it slip away. When this happens you may need your insurance agent to review the coverage requirements the job demands and provide you with a cert on the spot. That’s why choosing a good insurance agent is of the utmost importance.
Urgent situations like this arise frequently. And as one of the people responsible for providing clients with certificates of insurance, I have been in many situations where prompt and efficient service had been imperative to the client acquiring the job contract. Anything less could result in your business losing the job contract, and therefore losing money.
Situations like this illustrate the importance of having a quality insurance agency - one that will not only protect your business, but will also facilitate in its growth. At Connor & Gallagher, we see it as our responsibility to do both.
