Why Maintaining Your Certificates of Insurance Is So Important


Obtaining certificates of insurance (COI) is an essential step in the construction bidding and performance process. Clients, including residential property owners, commercial real estate owners, municipalities and public bodies, and general contractors (GC), all require contractors to provide COIs.

Keeping up with your COIs is critical for several reasons:

Proof of Insurance

Having up-to-date certificates of insurance provides tangible proof that you are adequately insured. Stakeholders on a project want evidence of coverage to reduce the risk of legal and financial consequences in case of accidents or incidents that occur on the job.

Project Approval

Up-to-date certificates can facilitate project approval.

Contractual Obligations

Most construction contracts require contractors to maintain specific insurance coverage such as General Liability, Builders Risk, and Workers’ Compensation. Failure to comply with these contractual obligations may result in contract breaches and legal disputes. Maintaining current COIs helps contractors meet client expectations and fulfill contract requirements.

Legal Compliance

Contractors are often required to comply with local, state, and federal regulations regarding insurance coverage. Maintaining up-to-date certificates ensures compliance with these regulatory requirements. Additionally, COIs showing proof of Worker’s Compensation coverage are essential to comply with labor laws and protect both workers and employers in case of workplace injuries.

Ensure the person responsible for managing your certificates is well trained on the process, including understanding the components of insurance policies, such as coverage limits. In addition, as mentioned above, many contracts require contractors to maintain specific types and amounts of insurance coverage. Training individuals responsible for obtaining and managing COIs ensures they understand these contractual obligations.

We Provide a Streamlined COI Process

Gaslamp facilitates requests for certificates of insurance for contractors. Just visit our website and click “Request a Certificate“ under the Customer Service tab. Complete the information on the online form and submit it to us. One of our customer service reps will attend to your request. If there is any missing information or a change request, we’ll contact you.

It’s important to note that a COI is not an actual insurance policy and does not amend, extend, or alter the coverage afforded by the actual terms and conditions of the policy. It is for informational purposes only.