Certificates of Insurance – What SubContractors Need to Know

Certificates of Insurance – What SubContractors Need to Know

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How is the process of getting a certificate of insurance changing?

A general or generic certificate of insurance used to be all you needed for most jobs. But many general contractors and project owners are now giving certs more scrutiny — demanding greater detail, higher limits and additional coverages, on top of being named as an additional insured. Meeting these requests can delay your ability to get started on the job site, disqualify you from a job or even stand in the way of getting paid.

How can subcontractors best accommodate these changes?

The best way to adjust to these demands is to have a good relationship with your broker and to share the general contractor’s requests and requirements as early in the process as possible – even before you bid. We have seen subcontractors get burned by waiting too long and finding out only after they’ve done the work that the cost of the insurance requirements would consume any profit they had built into the job.

How can my broker help?
Your broker can review the GC’s requirements and help make sure you have all the coverage requested. If no additional coverages are needed our turnaround time for certificates is two hours.  For additional coverage, however, extra time is required to get bids from carriers.

Any other tips?
Speed is always a factor in these situations. You can save yourself both time and money by sharing all the requirements from the GC – even copies of their email – as early as possible to ensure your broker sees all the details before the cert process begins.

What can small subcontractors do?
Not all brokers are as helpful as they could be in this time-consuming service.  You should ask your broker about their cert process so you’ll know what to expect. Starting early provides you with the best opportunity to build any additional costs into the bid – and keep your profitability intact.

How can I contact you for a cert request?
To quickly send a certificate request, email certs@millercares.com.

By Kasey Booth, Account Manager, Construction, Commercial Insurance

 

See Also:

Do Contractors Need Errors & Omissions Insurance?

9 Ways To Reduce Your Insurance Risk

Construction-Savvy CPAs Good For Your Business

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