Ask PIA

Certificates—listing exclusions

We frequently are asked to issue a certificate of insurance for contractors. If there are excluded operations (e.g., roofing), should these be listed on the certificate?

BAP additional insured

Suppose a certificate holder requests additional insured coverage on the business automobile policy, as well as the general liability policy. Can I just state on the certificate that the certificate holder is an additional insured on the business automobile policy or must I actually endorse the policy with the Designated Insured (CA 20 48) endorsement?

Certificates—additional insureds

Will there be a need to amend any wording on the certificate of insurance in response to the new additional insured endorsements?

Primary language on certificates

If “primary” coverage is already built into most subcontractors’ general liability policies, why won’t their insurance carriers allow us to add “primary” language onto a certificate?

Certificate—how much information is enough under certificates of insurance

When issuing a certificate of insurance, how much information about the insured’s coverages do we need to list on the certificate? For example, their contract or lease requires a $1 million umbrella but the client carries a $5 million umbrella. Would it be misrepresentation if we only showed the $1 million or do we have to show the full $5 million limit? If the answer is the $5 million limit, then what do we do if the additional insured section of the underlying general liability policy states that the additional insured is only covered up to the limit required by contract?

Automatic additional insured

If we indicate that a contractor is an additional insured on a certificate of insurance and there is an automatic additional insured endorsement on the policy, what is an agent’s duty to verify that the insured has agreed in writing to name the contractor as an additional insured?

Certificates—midterm change in limits

In these economic times, we have a number of clients looking to reduce their umbrella limit on a midterm basis. We have issued certificates reflecting the higher limit that was originally purchased. Would we have to re-issue all of the certificates that were previously issued or do we just issue new certificates at renewal time?

Certificates—prescribed language

We received a certificate of insurance with the following statement stamped on the back page:

IMPORTANT NOTICE: THE NEW YORK STATE DEPARTMENT OF FINANCIAL SERVICES HAS STATED THAT 1) THIS CERTIFICATE OF INSURANCE PROVIDES EVIDENCE OF COVERAGE IN LIEU OF AN ACTUAL COPY OF THE INSURANCE POLICY; 2) THIS CERTIFICATE DOES NOT AMEND, EXPAND OR ALTER ANY OF THE TERMS OF THE INSURANCE POLICIES ADDRESSED BY THIS CERTIFICATE; AND 3) THE WORDING OF THE REFERENCED INSURANCE POLICIES, AND NOT THIS CERTIFICATE, WILL CONTROL IN THE EVENT OF ANY INCONSISTENCY OR CONFLICT BETWEEN THIS CERTIFICATE AND THE APPLICABLE POLICIES OF INSURANCE. A COPY OF THE APPLICABLE POLICIES OF INSURANCE WILL BE PROVIDED FOR INSPECTION UPON WRITTEN REQUEST.

Is this specific wording required to be on New York certificates of insurance?

‘Sample’ certificate of insurance

We have an insured asking for a “sample” certificate of insurance. He does not want a certificate holder listed and intends to deliver it to whomever requests proof of his errors-and-omissions policy. Is this acceptable?

Certificate holders

My client has insurance to do business as a drywaller and gave a certificate of insurance to a general contractor. She recently had her policy canceled by the carrier. Do I, as an agent, have to notify the certificate holder (the general contractor) that the policy was canceled?