How to check a certificate of insurance against your contract requirements

The certificate arrived. Now what?

A subcontractor sends its certificate of insurance, usually an ACORD 25. It has the right logo, a few policy numbers and some limits. Most people glance at it, file it and move on.

The problem is that a certificate only helps you if it matches what your contract asks for. A $1,000,000 limit is fine if your contract requires $1,000,000, and a gap if it requires $2,000,000. This guide walks through the comparison in the order that catches the most common problems.

Start with your contract, not the certificate

Before you look at the certificate, write down what your subcontract or vendor agreement actually requires. Insurance requirements are usually in an insurance article or an exhibit near the end. Pull out:

Each coverage required: general liability, auto, workers' compensation and employer's liability, umbrella or excess, and sometimes professional or pollution liability.
Each limit: per occurrence and aggregate for general liability, combined single limit for auto, the three employer's liability limits, and the umbrella limit.
Who must be an additional insured, and on which policies.
Other wording: primary and non-contributory, waiver of subrogation, per-project aggregate, completed operations, notice of cancellation.

If your requirements are not written down, every check becomes a judgment call. A one-page list per contract type saves hours later.

Seven checks, in order

1. The named insured is the company you hired

The insured box should show the exact legal name of the company on your subcontract. "ABC Drywall" on the certificate and "ABC Interiors LLC" on the contract may be two different companies, and only the named insured's policy responds.

2. Every required coverage is there

Check each line on the certificate against your list. A missing auto section or a blank workers' compensation section is the most common gap, and the easiest to spot.

3. Each limit meets the requirement

Compare number to number. Look at both the per-occurrence and aggregate limits for general liability. If your contract requires the aggregate to apply per project, look for a note saying so; without it, other jobs can use up the same aggregate.

An umbrella can make up a shortfall, but only if your contract allows it and the umbrella sits over the policy that is short.

4. The dates cover your work

Check that each policy is in force today and will stay in force for the work. If a policy expires in the middle of the job, put the renewal date in your calendar now. A certificate is a snapshot of one day.

5. You are named where you need to be

Your name in the certificate holder box does not make you an additional insured. The holder box only shows who received the certificate. Additional insured status comes from an endorsement on the policy. The certificate can only report that someone believes one exists.

6. The special wording is shown, then confirmed

Primary and non-contributory and waiver of subrogation often appear as a box or a line in the description section. Like additional insured status, they come from the policy and its endorsements. When your contract requires them, ask for the endorsement pages.

7. The insurers are real and acceptable

Check that each insurer listed is a licensed company. The NAIC's Consumer Insurance Search lets you look up an insurer by name. Some contracts also require a minimum financial strength rating. If yours does, check the rating for the insurer actually named on the certificate.

What a certificate can never show

The standard certificate says in its own fine print that it is issued for information only and does not change the policies it lists. So even a certificate that matches every line of your list leaves open questions:

whether the additional insured endorsement covers ongoing work, completed work, or both;
whether exclusions on the policy affect your type of work;
whether you will be told if the policy is cancelled. Current ACORD wording says notice "will be delivered in accordance with the policy provisions", which may mean no notice to you at all (Risk Management magazine).

For the requirements that matter most, ask for the endorsement pages, not just the certificate.

When it doesn't match

Don't fix the certificate yourself, and don't accept a promise. Write to the subcontractor and its broker with the exact gaps, for example: "General liability aggregate shows $1,000,000; the subcontract requires $2,000,000 per project." A specific request gets a corrected certificate faster than "please send a compliant COI."

Keep the subcontractor off the job, or hold payment, only as your contract allows. Your attorney can tell you what your agreement permits.

Where Certgio fits

Certgio does this comparison for you. Upload your contract and Certgio lists the insurance requirements it finds for you to review. Then it compares each certificate with those requirements and shows, in plain English, what matches and what doesn't.

The free check compares general liability, auto, workers' comp and umbrella limits, the additional insured and expiry dates. It can't prove an endorsement exists, because a certificate can't. When your requirements call for an endorsement, Certgio tells you to ask for the endorsement page.

Check a certificate against your requirements, free, no account needed

This guide is general information about how certificates of insurance usually work in the United States. It is not legal or insurance advice. Policy wording, contracts and state law vary: confirm the details with your broker and your attorney.