In New York, it’s a common requirement for contractors to provide proof of insurance before starting any project. This proof is typically provided in the form of a Certificate of Insurance (COI), also known as a cert.
But why is everyone asking you for a COI? Let’s dive into the importance of a COI and why building owners and general contractors (GCs) request it.
Protection in Case of Mistakes
One of the main reasons for requesting a COI is to ensure that if you make a mistake, your insurance will be there to cover any potential damages. It offers peace of mind to the project stakeholders that your work is backed by adequate insurance coverage.
Avoid Additional Premiums
Another crucial aspect is that if you don’t have liability and workers’ compensation insurance, the GC may have to pay additional premiums to cover your work. By providing a COI, you demonstrate that you have the necessary coverage, reducing the financial burden on the GC.
How to Obtain a Certificate of Insurance
To obtain a COI, you can simply reach out to your insurance broker via email or phone. At GRBM, we prioritize delivering COIs promptly to our clients. When making the request, provide the required certificate holder and additional insureds information.
In some cases, the list of additional insureds can be extensive. It’s advisable to request a sample COI from the party requiring proof of coverage, ensuring you have all the necessary details.
Timeliness of COI Delivery
At GRBM, we strive to deliver COIs within 90 minutes or less. In urgent situations, we can even provide the COI while on the phone with you. However, it’s important to note that every job shouldn’t require an immediate COI. Planning ahead can help avoid last-minute emergencies.
Cost of Obtaining a COI
Obtaining a COI should not come with an additional cost. At GRBM, we provide COIs as part of our service to customers. If your broker charges a per certificate fee, it may be time to consider finding a new broker.
Common Forms of COI in New York
The Acord 25 form is the most commonly requested COI and is generally accepted by general contractors and building owners. However, New York has a few specialized forms for COIs, including:
- Acord 25: Certificate of Liability Insurance – The standard proof of coverage form.
- Acord 855: New York Construction Certificate of Liability Insurance Addendum – Specifically designed for New York contractors to show injury to employees and action-over coverage. – (Link to 855 Article )
- PGL1 Form: Project-Specific General Liability Insurance Summary and Affirmation – This form is specific to large projects or ground-up construction and is required by the New York City Department of Buildings. ( Link to PGL1 article )
Information Included in a Certificate of Liability Insurance
A basic Acord 25 form provides an overview of the insurance coverage maintained by your company, including General Liability, Commercial Auto, Commercial Umbrella, and Workers’
Compensation. It also includes policy details such as insurance company name, policy numbers, coverage amounts, and effective expiration dates.
Beware of Misleading Certificates
When requesting certificates from subcontractors, it’s crucial to be vigilant against unethical contractors and brokers who may attempt to mislead the coverage available. Look for red flags such as missing broker information or inconsistencies in the document. If you need a COI for an upcoming project, take the next step below. At GRBM, we aim to simplify the insurance buying process from start to finish.
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