Section 4.45 Insurance Certificates

• Library: Construction Law 2016 Supp

XVII. (§4.45) Insurance Certificates

As part of their contract terms, owners generally require insurance certificates from all contractors, verifying that the required insurance is in place. Contractors, in turn, require the same from all subcontractors and suppliers down the line. Generally, subcontractors and suppliers should have the same coverage requirements as the contractor has under the prime contract insurance specifications. Notwithstanding this general rule of thumb, a contractor may run into practical difficulties in having its respective subcontractors and suppliers meet the owner’s insurance requirements.

It is prudent to not allow a contractor to start its work or enter the project site until all certificates are in hand. The owner or general contractor should check all certificates of the general contractor or subcontractors or suppliers respectively to ensure that they are using reputable insurance companies. One simple way to do this is to ask their respective insurance agents to check out the insurers in the BEST’S KEY RATING GUIDE—Property/Casualty·Life/Health (A.M. Best Co.), which is published each summer. The general contractor...