If you’re a general contractor, you probably collect certificates of insurance from every subcontractor (sub) before they set foot on the job. That’s a good habit. But a certificate showing you as an “additional insured” doesn’t guarantee you’re covered. 

Being an additional insured means you get protection under your sub’s insurance policy. Whether that protection actually exists depends on the fine print, and we see gaps in that fine print every day. 

Read the box at the top of any certificate. It says the certificate doesn’t change the policy. If there’s a claim, what matters is your contract and the sub’s actual policy.  

Blanket additional insured endorsements typically only apply if you have a signed, written contract that requires it, and many require that the contract be signed before the work starts. Endorsements that name you specifically typically do not carry this requirement.  

Your contract should require additional insured coverage while the sub is working (the standard form is CG 20 10) and after the work is finished (CG 20 37). The “after” part, or completed operations, matters because claims can show up years later. 

There are numerous versions of these forms. We typically recommend our clients require the 10/01 edition or earlier. The earlier the edition, the broader the coverage. However, many insurers won’t offer these older versions anymore. 

Many insurers use their own forms instead of the standard ones. To address this, you can include a requirement for standard forms “or their equivalent.” Additional insured coverage is often provided within bundled ‘broadening’ endorsements. Unfortunately, the only way to know if adequate coverage is provided is to read them. 

Coverage after the job ends only lasts as long as the sub keeps renewing their policy. Your contract should require them to keep it for as long as you could be sued for that work. This is known as the state statute of repose and varies by state (10 years in Indiana).  

Older forms covered you for claims “arising out of” the sub’s work. Courts read that broadly. Newer forms only cover you if the injury was “caused, in whole or in part,” by the sub. 

That difference matters most when one of the sub’s employees gets hurt. Workers’ comp usually stops the employee from suing their own employer, so they sue you instead, often claiming you didn’t keep the site safe. Your contract with the owner usually makes site safety your responsibility, and courts often won’t let you pass that responsibility off to a sub. 

If the lawsuit blames only you, because the injury wasn’t ’caused’ by the sub, the sub’s insurer can argue its policy doesn’t apply. I have seen these claims settle for millions. Without the right forms and enough limits, that lands on your company. 

Require the limits you want. Some additional insured endorsements limit the amount of insurance available in the event of a claim to the amount required by the contract. This can reduce the coverage available if the sub carries higher limits.  

When you hire a sub, you’re relying on their insurance as much as your own. A few minutes reviewing their forms up front can prevent a very expensive surprise later. 

Certificate tracking services can help you collect and organize COIs, but most don’t read the endorsement wording, and that’s typically where the gaps exist. 

I review additional insured endorsements every day. If you’ve got one you’re not sure about, send it my way. I’m happy to take a look.