Certificates of Insurance
5 5

9 posts in this topic

Like many of you, we do our fair share of subcontract work. I know when our Work Comp is close to expiration my email will be blowing up with requests for COI's. Not a big deal. Here is where I would like you guys opinion.

Just now I recieve an email. We need your COI. Ok. I respond, attach our COI and we're done with it. Two seconds later I recieve an email saying we didn't list X company as additional. I let them know if they have a project they would like us to work on, I have no problem listing them.

Years ago our agent told us this was basically letting them have free insurance and exposing ourselves. What do you guys do? I hate being a jerk about things, but I don't want to list X company as additional insured if we never do anything for them. This particular company told me I was now removed from their list.

Share this post


Link to post
Share on other sites

What are you out? I guess my agent charges me 25.00 to add as an additional insured but its not like they can claim on your policy if you are not doing work for them. So I don't know where the free insurance comes in there. (just got off the phone with my wife who is a Commercial lines insurance underwriter for a rather large company.)

Share this post


Link to post
Share on other sites

Not out a dime. I know you have to list everyone as additional insured now. I just hate doing it for lots of companies we may never do anything for. I just didn't know if anyone's agent had advised against it. This was about ten years ago when ours said that. He was a real old school kind of guy. Thanks!

Share this post


Link to post
Share on other sites

We don't get charged for proof of insurance slips for our customers, that isn't right.

What you have to watch out for is the low-lifes that ask for it and then go on site and do the job with their shop help, once the property manager has it in the office, they don't ask for it on site, so after you fax and email it all, a guy from the sign shop shows up and does the install. You cannot work in most reputable places without WSIB and Liability around here, problem is they never ask for your ID when you get to site.

I've been insured for 12 years, this guy and his brother have never paid a penny to an insurance company for liability or workers comp. and has been in business longer than me. Thats a kick in the face.

1 person likes this

Share this post


Link to post
Share on other sites

We don't get charged for COI's or adding additional insured. Just a phone call and it's emailed in 15 mins usually.

Share this post


Link to post
Share on other sites

Like many of you, we do our fair share of subcontract work. I know when our Work Comp is close to expiration my email will be blowing up with requests for COI's. Not a big deal. Here is where I would like you guys opinion.

Just now I recieve an email. We need your COI. Ok. I respond, attach our COI and we're done with it. Two seconds later I recieve an email saying we didn't list X company as additional. I let them know if they have a project they would like us to work on, I have no problem listing them.

Years ago our agent told us this was basically letting them have free insurance and exposing ourselves. What do you guys do? I hate being a jerk about things, but I don't want to list X company as additional insured if we never do anything for them. This particular company told me I was now removed from their list.

I have to chuckle at this whole scenario as I go through the exact process you have outlined on a regular basis.

Your potential customer wants to be listed as an "Additional Insured" on any project and you want it to be project specific. Most national vendors or NSP's want to be listed as an "Additional Insured" and if you don't list them this way, they won't sign any agreements. Some GL policies charge for the "Additional Insured" and some, like mine, do not. Depends on your policy company of record.

You are basically worried that you are giving your potential customer a free ride to use your policy whenever the need arises. That usually is not the case if you are not the contractor of record on any project. Can I absolutely say this would never happen, no, but not likely. In my years off issuing coi's to potential and actual customers, I have not had this happen to me.

Heck, you can have the police mis-identify you as the person at a crime scene. This is not the normal, but it does happen and you can't prevent all situations from haunting you.

If you solicit a lot of national types, NSP's or even large end customers such as Starbucks, Petco, Exxon, etc., get used to it. You will hand out certificates with this proviso regularly. You have to decide who you will solicit and will provide insurance to. But the number of certificates can be vast.

And just to make this whole process even more sticky, wait until the words "Waiver of Subrogation" come up. This is monster all its own. And in some cases with some vendors like FM Maintenance, they want either an umbrella policy to raise the aggregate limit to 3 Million or have you raise the aggregate limit on the policy itself.

The fun never ends with insurance and its effect on the construction industry.

Best of luck going forward....

1 person likes this

Share this post


Link to post
Share on other sites

We don't get billed extra, it's part of our ins. package. Some companies ask for more insurance than we carry, and we politely respond with "our insurance is more than sufficient for the scope of work we do", and that has never been a problem.

Share this post


Link to post
Share on other sites

We never have been billed for additional insured listing BUT we will never give it to anyone without a commited job. When we get our anual audit the auditor always asks to see the income for all the additional insured jobs just to be sure we aren't hiding any income since the actual rate is based upon not only payroll but total income. Stand up let the "big guys" go if they don't conform to YOUR company policy. Most of them aren't worth the powder to blow them away anyway.

1 person likes this

Share this post


Link to post
Share on other sites

Just like the last post, I don't request a cert from my insurance agent until a job is sold. We usually get a sample cert from the client, showing who they want listed and the amounts they are requesting that we carry. We've never had any issues.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!


Register a new account

Sign in

Already have an account? Sign in here.


Sign In Now
5 5



  • Topics

  • Posts

    • We have a 6x18 CLN and are very happy with it.  They can build to your needs and size needs.  
    • ok, so I have decided on my channel letter bender now I need recommendations on routers. What is everyone using and why did you choose that machine? We are a regional sign shop that is full service. Been here since 1979. Don't want a junk machine that is slow but don't wanna spend 100,000 either. Thanks!
    •   compensation: TBD Based on experience  employment type: full-time    Electrical sign company is Anaheim, CA is seeking full time experienced sign installers. Must be hard working and motivated with a clean driving record. MUST HAVE EXPERIENCE PLEASE.   BENEFITS:   Medical, FSA, vacations, paid holidays and 401k profit sharing   Please email resume to Jim at: jimg@signage-solutions.com
    • Franchise Operations Advisor - Business Advisor -MUST HAVE SIGN INDUSTRY (Outside Sales / Business Development / Customer Service / Full Time)   Top Five Reasons YOU Should Work at United Franchise Group   We encourage and help people become successful entrepreneurs to enhance their lives and the communities around them. Our team consists of people who are zealous about growing personally and professionally. We are made up of positive, enthusiastic, and passionate people who work hard and play hard. We are a family owned company that functions like a family, quirks and all! It’s our mission to provide the best customer service to our franchisees across the globe. When they are successful, we are successful!   Requirements & Skills   As a Franchise Operations Advisor, you will play a key role traveling to visit all franchise stores within your assigned territories with the purpose of understanding and defining their needs. Specific duties for this customer service role include: Implementing franchisee store Startup Program Maintaining a daily and weekly schedule Training and reinforcing the franchise model and safe operation of production equipment Instructing franchisees to comply with franchise model and system Compiling brand compliance data Assisting franchisees with increasing brand image Participating in regional meetings; completing, maintaining, and processing required paperwork   If you are looking for an opportunity to thrive and build a rewarding career with an industry-leading company – this is your chance to join us at United Franchise Group! With over 30 years in the franchising industry and more than 1400 franchisees throughout the world, United Franchise Group offers unprecedented leadership and solid business opportunities for entrepreneurs. With us, you’ll enjoy an awesome, fun work environment with a great team of smart, motivated, innovative and fun people. More than just another job, this is a fantastic opportunity to establish yourself and build a career in this globally expanding industry.     Join us at United Franchise Group – a global leader for entrepreneurs! Apply now!   https://www.jobs.net/jobs/unitedfranchisegroup/en-us/job/United-States/Franchise-Operations-Advisor-Business-Advisor/J3V2CF6RSQHHMSW7PR7/    
  • Who's Chatting

    There are no users currently in the chat room

  • Latest Videos