Construction COI

A construction certificate of insurance is a crucial document that provides protection and peace of mind for the subcontractor, general contractor and the owner. The COI serves as a proof that the company is insured and is covered by any potential risks or liabilities that may arise in the construction. 

The main purpose of the COI is to protect the property owner. The COI ensures that if any damages or issues occur to the property, the insurance will cover the costs of repair or replacement. The COI safeguards the owner's investment and helps maintain a positive work relationship with both parties. This certificate can also protect the subcontractors and contractors from potential lawsuits or claims that are filled by others. Anyone in the construction field knows, anything can happen. While there are steps taken to limit issues and damages, it is good to be protected legally. 

In the construction industry, it is a good practice to make sure you and your subs are covered under insurance. Many people often assume that having a COI on file means you are good to go but that may not be the case. The COI may not cover all the damages or liabilities and can leave you in a bit of trouble. Actively asking and testing the company's knowledge of their COI is a good practice to ensure that they are covered as well as you.

Some things to look for when confirming a COI is good to go. You need to verify the scope of work on the COI matches what that actual job entails. You also need to include contract language. One thing you can do is ask for the entire contract policy from the party to make sure everything is correct. As a general contractor, you could obtain a CCIP, or a contractor-controlled insurance program which can be very beneficial to your company.

The certificate of insurance is a big piece of the construction puzzle. Not only does it protect you and your company, but it can make you company look better for being up to date with insurance. These certificates can protect against potential risks and liabilities while showing transparency and professionalism. By having the COI, both property owners and contractors can move forward knowing they are protected in case something goes wrong.