If you work as a contractor, you’ve probably been asked to provide a certificate of insurance before starting a project. This simple document plays a crucial role in protecting you and your clients, yet many contractors don’t fully understand what it contains or why it’s so important. At E.S.T.I.R. Inc., serving Bloomfield, NJ, we help contractors navigate insurance requirements and ensure they have proper documentation for every job.
What Is a Certificate of Insurance?
A certificate of insurance is a one-page document that summarizes your current insurance coverage. It shows policy numbers, coverage amounts, and effective dates, and identifies your insurance carrier. Think of it as a snapshot of your insurance portfolio that proves you have active coverage.
Why Clients Require Certificates
Property owners and general contractors request certificates to protect themselves from liability. If an uninsured contractor causes damage or someone gets injured on the job, the property owner could face expensive lawsuits. By requiring proof of insurance, clients ensure that any claims will be handled by your insurance company rather than coming out of their pocket. Many contracts won’t be signed without this documentation.
Additional Insured Requirements
Many certificates include "additional insured" status for the client, which extends your liability coverage to protect them for claims related to your work. This arrangement provides extra security for property owners while keeping your insurance costs reasonable compared to them purchasing separate coverage.
Understanding certificate requirements helps you win more contracts and maintain professional relationships. E.S.T.I.R. Inc. can help you obtain proper coverage and ensure your certificates meet industry standards for every project you pursue. Contact us. We’re currently serving Bloomfield, NJ.
