January 2007

Using certificates of insurance | Safe Solutions

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Using certificates of insurance

by Leslie Kazmierowski, CPCU
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Certificates of insurance are an important part of the roofing industry. Requiring a certificate of insurance from a subcontractor enables you to better manage your business relationship.

Certificates of insurance are provided or obtained to verify the existence of insurance coverage and determine whether existing coverage limits are adequate and meet contract requirements. They are issued as a matter of information only and confer no rights upon the certificate holder. You would be the certificate holder when you obtain a certificate from a subcontractor.

Ensuring coverage

Why use certificates of insurance? If you don't require a certificate of insurance before a subcontractor begins work, you later may discover the subcontractor has no insurance, and your insurance company may have to pay for all or part of the losses arising from the subcontractor's negligent actions from which you might otherwise...

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