Engineering Certificate of Insurance

[JStructsteel]

A contractor I did work for wants a Certificate of Insurance naming them as a certificate holder. What does that give them? Is it me covering them as a liable party?

 

[jerseyshore]

CoI's are requested all the time. Just for your client to have it documented that you have the proper insurance.

 

[phamENG]

This is fine and normal. What you don't want is them being named as additional insured. (Or, rather, they don't even if they ask for it. )

Being named s certificate holder proves it was sent to them for the purpose of confirming insurance for their projects. Their insurance likely requires this. It also means they'll receive annual updates and a notice of cancelation if you cancel your insurance.

 

[JStructsteel]

Thanks everyone.

 

[XR250]

I hate when people ask me for these. Usually they want to be a "named insured" My agent says it is a joke since if they try to sue you they are suing themselves.

 

[phamENG]

McGriff makes it really easy - simple form that I have filled out with my information and just have to add the client's name, address, and email. Not usually important if you're working for homeowners or really small firms, but most contractors and larger architects have to have them for their own insurance audits. It's nothing more than proof of insurance, like showing your car insurance card to a rental car agent. The difference is that while you're on the hook for that car for a day or two, you're on the hook for that building for several years. So as a COI holder, they are entitled to updates in your coverage so they can ensure you're not in breach of contract (most big contracts have insurance requirements and that you maintain that coverage for a set amount of time.)

Named insured is common in the General Liability insurance world and is something we should understand if doing Design Build projects (there was a good article on it in a Structure edition recently), but Professional Liability is structured differently. If only they were suing themselves...they can still sue you, your insurance just won't foot the bill.

 

[XR250]

@Pham,

When I get those requests, I just forward the e-mail to Jenny and let her take care of it. I have never filled out a form.

 

[phamENG]

You must be some sort of 'Legacy Client' then. Or maybe she just likes you more.

 

[XR250]

Or maybe she just likes you more.

Most likely