How to check a certificate of insurance in 5 minutes

When a vendor or subcontractor sends you a certificate of insurance, it is almost always the standard ACORD 25 form: one page, a table of policies in the middle, your company's name in the bottom-left box. A certificate is a summary of the vendor's insurance on the day it was issued. It doesn't prove coverage on its own, but checking it properly catches most problems. Here is what to look at, in order.

1. Is it made out to you?

Look at the Certificate holder box, bottom left. It should show your company's exact legal name and address. A certificate made out to another company, or with a misspelled name, was issued for someone else; ask the vendor for one in your name.

2. Are the dates current?

Each policy row has a Policy effective and Policy expiration date. Check every row, not just the first one.

• An expiration date in the past means that policy was not in force on this certificate.
• A date within the next 30 days means you should ask for the renewed certificate now, before the vendor is back on site.

3. Is every coverage you require there?

The rows list the types of insurance. The usual ones for a subcontractor are general liability (injury or damage they cause to others), auto liability, an umbrella or excess policy on top, and workers comp with employers liability. A row that is empty means that coverage is not shown. If your contract requires it, ask for it.

4. Are the limits high enough?

The Limits column shows the most each policy pays. Compare them with what your contract or lease requires. Many contractors start from $1,000,000 each occurrence and $2,000,000 aggregate for general liability, $1,000,000 for auto, and workers comp marked per statute, but your contracts and your broker decide the real numbers.

5. Are you additional insured, and is subrogation waived?

Two narrow columns on the left, ADDL INSD and SUBR WVD, should show a "Y" on the policies your contract names.

• Additional insured means the vendor's policy also protects you for claims caused by their work. More on additional insured.
• Waiver of subrogation means their insurer agrees not to come after you to recover what it paid.

A "Y" on the certificate only says these are in place. The proof is the endorsement page from the policy, so ask the vendor for a copy.

6. When in doubt, call the agent

The Producer box, top left, shows the vendor's insurance agent with a phone number and email. If anything looks edited or unusual, call the agent and ask them to confirm the certificate. Agents do this every day, and it is the quickest way to spot a fake.

Then: keep track of the dates

Checking a certificate once isn't the end. Policies renew every year, so note each expiration date and ask for the new certificate a month before. That is the step most companies lose track of, and it's where uninsured vendors slip through.