Who needs a Certificate of Insurance?

If you’re hiring someone to do work for you (building, remodeling, etc.) – you’ll want to make sure they have sufficient insurance coverage while they’re doing that work. A Certificate of Insurance will indicate what levels of insurance they have.

You don’t want to hire someone who doesn’t have adequate insurance. Here are some good questions to ask:

• What’s considered "enough" coverage?
• If you lease space, does your lease agreement specify what is required of a contractor or subcontractor?
• Do they have workers’ compensation coverage? If not, will you be responsible if the person you hired is hurt and blames you?
• Who do you ask for a Certificate of Insurance? The contractor? Their agent?

Be certain to ask questions and review the actual Certificate of Insurance. It’s a good idea to get the Certificate of Insurance during the bidding process. And make sure it’s an original – not a photocopy.

Here’s a sample of a Certificate of Insurance. How do you know it’s an original? Make sure your name is in the box in the bottom left corner.  Download sample_cert_of_ins.pdf

Flickr photo by lambdachialpha