Insurance Certificate

What is Insurance Certificate?

Definition of Insurance Certificate in Construction
Each contractor and subcontractor is required to provide an insurance certificate that identifies the limits of insurance that is being carried on a specific project.

The specifications will stipulate the requirements for insurance on the project and will indicate the additional insured entities that must be listed on the certificate of insurance. Normally the insurance certificate is addressed to the owner, and the additional insured are the architect, engineers, possibly the bank, etc. The additional insured requirements are clearly listed in the specifications and every entity on the project, must have an insurance certificate, prior to commencing work. The insurance companies will issue insurance certificates as part of their services for using them to supply the insurance to the contractor. The updating and managing of insurance certificates on a construction project is extremely important. The failure of not requiring updated insurance can be devastating, if there is an insurance incident, and the certificate of insurance has expired. Insurance requirements should be a very basic part of all construction contracts and their management , a basic part of any construction management operation.