Before You Sign: Check the Contract’s Insurance Requirements

A certificate of insurance is a one-page summary of the insurer, policy dates, coverages, and limits. An agency may issue it to a client, landlord, contractor, lender, or other party requesting proof.

The certificate provides information but does not change the policy. It may reference an additional insured endorsement, but the actual endorsement determines who is protected and under what conditions.

When a contract requires an endorsement, confirm that the policy contains an appropriate form before issuing or accepting the certificate. Ask for a copy when the contract or project warrants it.

Order matters, and the contract comes first. A GC signs with an owner. A cleaner signs with a property manager. A box truck operator signs with a logistics broker. Each contract carries an insurance schedule — the limits, coverage lines, endorsements, and parties you have to carry.

Endorsements change a policy's coverage, conditions, or protected parties. Contracts often request additional insured status, primary and non-contributory wording, a waiver of subrogation, or cancellation notice. Availability and scope depend on the insurer and policy form.

An additional insured endorsement extends your GL policy to another party for claims arising from your work. The project owner, the property manager, the shipper — these are the parties that routinely want it.

The scope depends on the form. Some endorsements cover only ongoing work, while others may address completed operations. Confirm that the endorsement matches the timing and activity described in the contract.

Example scenario: A cleaner finishes a post-construction job. Six months later a tenant files a slip-and-fall claim, and the building owner's carrier turns to the cleaner's policy as an additional insured. Whether coverage responds hinges on one thing — whether the endorsement reaches completed operations, not just ongoing work. This is subject to the policy's terms and exclusions.

When several parties have insurance, the policies may disagree about which responds first. Primary and noncontributory wording generally calls for the vendor's policy to respond before the client's coverage and without seeking a contribution from it, subject to the policy and facts.

A certificate claiming primary and non-contributory is accurate only if the endorsement is in the policy. Some ISO forms grant additional insureds primary status by default. The non-contributory piece often needs its own endorsement. Confirm your policy carries the wording — and that the form matches the language your contract uses.

Subrogation is an insurer's right to seek repayment from a responsible party after paying a claim. A waiver can limit that right against parties identified in the policy, subject to its terms and applicable law.

The waiver has to be agreed in writing before the loss. Requested after the fact, it generally won't hold. And it has to live in the policy to be enforceable. A certificate listing a waiver with no endorsement behind it doesn't create one.

Example scenario: A carrier hauls freight under a contract requiring a waiver of subrogation. A cargo loss hits. The cargo insurer pays, then moves against the broker. With a blanket waiver endorsement in the policy, that action may be barred. Without it, the broker faces a claim from a carrier it thought was covered. This is subject to the policy's terms and applicable law.

A certificate may become inaccurate if it reuses an old template, references an unapproved endorsement, or is not updated after a policy change. Verify the current policy before issuing or accepting it.

The insurer applies the policy and endorsements, not unsupported wording on a certificate. Missing contract requirements can delay work or leave an unresolved contractual obligation. Verify the policy before issuing or accepting proof.

Before you sign a contract with an insurance schedule, send the insurance section to your broker with one question: does the current policy satisfy every line? If yes, a certificate can go out. If no, the broker names the endorsements or limit increases you need, then confirms the policy reflects them before anything issues.

Some requirements stack endorsements that each need their own form — primary-and-non-contributory wording, additional insured, completed operations coverage all named in the same clause, each handled separately. When a requirement reads ambiguous, ask an attorney about the contract's intent and your broker what the policy can support.

BLIS handles certificate requests for clients whose policies are serviced by the agency. Include the contract's insurance schedule so the service team can compare the request with the policy and identify questions or endorsement requests that may require insurer approval.

Contract insurance requirements are especially common in construction, transportation, and janitorial services. Each client may request different limits, endorsements, and proof.

Construction leans on the same four endorsements in nearly every agreement. Sub across several GCs at once and each may demand a different form or a different limit. Transportation operators work under minimum auto limits, minimum cargo limits, and certificate holder status — some brokers specify ISO form numbers and want signed endorsement copies. Janitorial contracts often require additional insured status for the owner or manager, a janitorial bond, and certificates reflecting both.

The principle holds across all three. The contract sets the requirement. The policy meets it or it doesn't. The certificate is the proof.