Ask PIA

Certificates—principals excluded

Should certificates of insurance indicate whether a principal (i.e., a sole proprietor, partner, or member) has not elected coverage on their workers’ compensation policy?

New Jersey Certificates of Insurance Law

I have a client whose business is located in New Jersey, but will be doing a job in another state. Does the New Jersey Certificate of Insurance Law apply if the insured is located in New Jersey even though the operations are being performed in a state other than New Jersey?

Certificates—contract requires less coverage

My client has entered into a contract to do work that requires them to carry a minimum of $1 million worth of coverage. However, my client’s policy provides $5 million worth of coverage. On the certificate, should I list the actual amount of coverage or the amount that is contractually required?

Warranties of coverage

I have a client who is a subcontractor. The client has asked that in addition to a certificate of insurance I provide them with a document warrantying that their insurance policy complies with the insurance requirements in their contract with the contractor. Can I issue this?

Certificates of insurance

Many of my clients are subcontractors, and are being requested by their general contractors to have certificates of insurance that sometimes go beyond the policy wording. Is there any way of modifying the certificate to assist our clients?

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 status 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?

CGL blanket additional insured endorsement

Do the ISO Commercial General Liability Coverage Form (CG 00 01) and a proprietary blanket additional insured endorsement satisfy the following statement that a landlord is requiring on the certificate?

XXXX, LLC and all direct and indirect subsidiaries or owners of these companies, their respective officers, directors, agents, and employees are named as additional insureds on my client’s general liability policy. The inclusion therein of any person or entity as an additional insured shall not affect any right such person or entity would have as a claimant thereunder if not so included.

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?

‘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?