Why COIs Matter on Construction Jobs
COIs are part of your risk and compliance package—owners and lenders often require them for pay apps and closeout.
- Verify active coverage and minimum limits before work starts
- Confirm endorsements that shift or share risk appropriately
- Reduce delays on AIA/progress pay apps that require proof
- Create a clear audit trail for claims and financing reviews
Core Coverages & Typical Add-Ons
Request only what your contract and project risk justify.
- General Liability (GL): bodily injury/property damage
- Automobile Liability: owned/non-owned/hired autos
- Workers’ Compensation & Employers’ Liability
- Umbrella/Excess Liability (when higher limits are needed)
- As applicable: Professional Liability, Pollution, Builder’s Risk (owner/GC)
Endorsements You’ll Commonly Require
COIs list policies; endorsements change how those policies respond.
- Additional Insured (you/owner) for ongoing & completed ops
- Primary & Non-Contributory wording
- Waiver of Subrogation in your favor
- Notice of Cancellation (per contract/insurer rules)
Tip: Ask for the endorsement forms (CG 20 10/20 37 or equivalents) when required—COIs alone aren’t binding.
Collection & Verification Workflow
Standardize the steps so subs can mobilize without last-minute scrambles.
- Pre-award: include coverage limits and endorsements in your RFP/subcontract
- Award: request COI directly from the sub’s broker/agent
- Verify: check named insured, policy numbers, effective/expiration dates, limits, and endorsements
- Track: log expiration dates; request renewals 15–30 days prior
- Gate: require valid COI on file before site access or payment
Tie COIs to Subcontracts, Site Access & Billing
Make compliance part of your normal project rhythm.
- Attach COIs to the subcontractor’s project record
- Include COI status on your pre-mobilization checklist
- Review COI status during pay-app review; request updates if expired
- Store final COIs/endorsements with closeout documents
Common Pitfalls (and Easy Fixes)
A few oversights cause most compliance issues.
- Expired policies: track expirations and automate renewal reminders
- No endorsements: ask the broker for specific forms, not just COI notes
- Wrong entity: named insured must match the subcontractor’s legal name
- Coverage gaps: verify limits and classifications match the scope
How Werx Fits Your COI Process
Keep your documentation with the work it supports.
- Attach COIs and endorsement PDFs to the project/subcontract record
- Track required documents alongside AIA/progress billing
- Centralize notes and reminders with your project files
- Sync invoices and payments to QuickBooks Online while keeping compliance docs up to date
FAQs About Certificates of Insurance
Are COIs legally binding?
No. A COI summarizes coverage but doesn’t change the policy. Endorsements and the policy itself control what’s covered—request those forms when your contract requires them.
When should I collect a COI?
Before mobilization and before approving the first pay app. Re-verify on renewal or if scope changes require different limits.
Do I need to be listed as Additional Insured?
Often yes—if your contract requires it. Ask for AI endorsements for ongoing and completed operations, plus Primary & Non-Contributory wording.
TL;DR Recap
- Collect COIs pre-mobilization with required endorsements
- Verify dates, limits, entities, and attach the actual endorsement forms
- Track expirations and renew 15–30 days ahead
- Store COIs with the subcontract and reference during pay-app review
