A certificate of insurance is a one-page summary, issued by your insurance agent or broker, showing the policies you carry, their limits and their dates. Public buyers use it to confirm you meet the solicitation's insurance requirements. Read those requirements early, send them to your agent before you bid, and check the certificate line by line before it goes in.
What a certificate is, and is not
A certificate is evidence of insurance. It lists the insurer, policy numbers, coverage types, limits and policy periods, and it names the agency as the certificate holder. It does not change your policies. Coverage changes, such as adding the agency as an additional insured, are made by endorsements to the policy itself.
That is why some buyers ask for copies of the endorsements as well as the certificate. If the certificate says one thing and the policy says another, the policy controls, so the endorsements are what truly protect the agency.
Only your agent or broker should issue or change a certificate. Never edit one yourself, even to fix a typo.
Coverages buyers often require
- Commercial general liability, for injury and property damage claims.
- Commercial auto liability, for vehicles used on the work.
- Workers compensation and employer's liability, as required by state law.
- Umbrella or excess liability, to raise limits above the base policies.
- Professional liability, for design, consulting and other professional services.
- Cyber liability, for work involving data or computer systems.
- Builder's risk or pollution coverage, for certain construction work.
Wording buyers often require
The required limits matter, but so does the wording. Look for these terms in the insurance section and ask your agent to confirm each one.
- Additional insured: the agency and sometimes its officers and employees are covered under your policy for claims arising from your work.
- Waiver of subrogation: your insurer agrees not to seek repayment from the agency after paying a claim.
- Primary and noncontributory: your policy pays first, before the agency's own insurance.
- Notice of cancellation: advance notice to the agency if a policy is canceled.
- Certificate holder: the agency's exact legal name and address.
When the certificate is due
Some solicitations require a certificate with the bid. Others ask only for proof that you can obtain the coverage, with the final certificate due after award and before work starts. Read carefully, because a missing certificate at the wrong stage can make a bid nonresponsive or delay a contract.
Even when the certificate is not due until after award, the requirements still affect your bid. Higher limits, extra coverages or special endorsements can raise your premium, and some can take time for your agent to arrange. Finding a gap after award can leave you racing to meet a start date, or unable to sign the contract at all.
Some buyers also require subcontractors to carry similar coverage and to provide their own certificates. Check whether that applies, and pass the requirements down to your subcontractors before you rely on their prices.
How to get it right
- Copy the full insurance section of the solicitation, including any sample contract terms.
- Send it to your agent early and ask whether your current policies meet every item.
- Ask what any increase in limits or new coverage would cost, and include that cost in your price.
- Review the draft certificate against the requirements, line by line.
- Confirm expiration dates fall after the bid date, and plan for renewals during the contract.
Rules vary by agency and state; check the solicitation and your own advisers.
Common questions
Can I bid if I do not yet carry every required coverage?
Sometimes. Some buyers accept a letter from your agent confirming you can obtain the coverage if awarded. Others require proof at bid time.
Does a certificate prove the agency is an additional insured?
Not on its own. The coverage comes from a policy endorsement, so buyers may ask to see that endorsement.
What happens when my policy renews during the contract?
Send an updated certificate to the agency before the old one expires. Many contracts require this.