How to read a certificate of insurance

Date and the disclaimer at the top

The date in the top corner is when the certificate was issued, not when coverage starts. A certificate issued last year can still list policies that are current, or ones that have since lapsed, so the issue date tells you little on its own.

Under the title there's a block of small print saying the certificate is for information only and doesn't change the policy. Take it literally: a certificate summarizes coverage on the day it was issued. It isn't the policy, and it doesn't prove the policy is still active today.

Producer

The producer is the insurance agent or broker who issued the certificate. If something on the certificate looks wrong, or you need a corrected one, this is who the vendor (or you) should contact. Agents can usually reissue a certificate the same day.

Insured

The insured is the business the policies cover: your vendor. Check that the legal name matches the company you're actually hiring. A certificate for a sister company or an individual owner may not cover the business doing the work.

Insurers affording coverage

Each insurance company behind the listed policies gets a letter (A, B, C…). The letter column in the coverage table tells you which company backs which policy. A vendor can have general liability with one carrier and workers' comp with another.

The coverage table

This is the heart of the certificate. Each row is a policy, with its type, policy number, effective and expiration dates, and limits. The common rows are:

• Commercial general liability: injuries and property damage caused by the vendor's operations. Look at each occurrence (the most paid for a single claim) and general aggregate (the most paid across all claims in the policy period).
• Automobile liability: accidents involving the vendor's vehicles, usually shown as a combined single limit per accident.
• Umbrella or excess liability: extra limits that sit on top of the policies above.
• Workers' compensation and employer's liability: injuries to the vendor's own employees. Workers' comp limits are set by state law and appear as "per statute"; the employer's liability limits are listed separately.

Policy effective and expiration dates

Every row has its own dates, and they rarely line up. Check the expiration date on each policy you care about. The most common problem with vendor certificates isn't missing coverage. It's coverage that quietly expired after the certificate was filed.

ADDL INSD and SUBR WVD

Two narrow columns sit next to each policy. ADDL INSD (additional insured) is marked when the policy extends coverage to another party, often the certificate holder. SUBR WVD (subrogation waived) is marked when the insurer has agreed not to pursue that party to recover a claim payment.

If your contract requires either one, look for the mark on the specific policy row, usually general liability. An empty box means the certificate doesn't show it. The box alone doesn't prove the endorsement exists, so many companies also ask for the endorsement page itself.

Description of operations

This free-text box is where the agent can name a project, a location, or additional insureds, or reference endorsements. Read it: it sometimes narrows what the certificate applies to.

Certificate holder

The certificate holder is who the certificate was issued to, usually you. Being the holder only means you get a copy. It doesn't make you an additional insured; that's the ADDL INSD column.

A quick check before a vendor starts work

1. The insured name matches the business you're hiring.
2. Every policy your contract asks for is listed.
3. Each of those policies runs past the dates the work will happen.
4. Limits meet the minimums in your contract.
5. ADDL INSD and SUBR WVD are marked where your contract requires them.
6. You have a reminder set for the earliest expiration date.

What limits and endorsements to require is a decision for you and your insurance broker or attorney. This guide explains what a certificate shows; it isn't insurance or legal advice.