Are the people you do business with insured? You might want to ask them.
If a vendor, contractor, cleaning crew, gardener/arborist, or other service provider does not have insurance, you may be out of luck if they cause property damage or injury. For projects or services that involve construction work, see Construction Site Liability and Insurance Considerations.
Never just take the word of a vendor. Many who are not insured may say "yes" because they don’t want to embarrass themselves. Instead, ask them to have their broker send a certificate of insurance so you can verify the policy is active and has not been canceled.
Some vendors, especially small firms, will try to convince you that they do not need insurance. Do not fall into this trap, as you will be accepting greater financial risk if something goes wrong. As a courtesy to existing clients, we can give you advice on any insurance certificate that is emailed or faxed to us; you may also find guidance on Business Liability Insurance.
If you hire a contractor for a remodel or other significant work, you may also find Insurance for General Contractors helpful when deciding what to require from the contractor.
If you're unsure how to proceed, talk to an agent about verifying certificates and coverage limits.
Suggestions on who you should request insurance certificates from:
- Contractors who are working on a home or commercial remodel
- Repair or installation service for your auto, home, or business
- Service contractors, such as gardening and maids/cleaning services
- Independent contractors or contract employment
- Professional services, such as a CPA, consultant, mortgage broker, staffing firm, insurance broker, architects/engineers, and others who provide professional services (professional liability)
- People who rent or lease from you
Types of Insurance you should request:
- General liability
- Workers compensation — for operations that have workers on your premises
- Commercial auto coverage — for those who use vehicles on the job
- Professional liability (errors & omissions insurance) — for those who provide professional services
Should you request a certificate for every purchase? It's your call, but if someone is entering your premises or you are purchasing a bigger-ticket item, you should strongly consider asking for insurance documentation.
Frequently Asked Questions
What is a certificate of insurance?
A certificate of insurance is a document from an insurer or broker that shows a contractor or vendor has a current insurance policy and summarizes coverage types and limits.
What should I look for on the certificate?
Check the policy types, coverage limits, policy effective and expiration dates, and whether your business is listed as an additional insured when required.
Can a certificate be faked?
Yes, so verify the certificate by asking the broker to email or fax it directly to you or ask your agent to confirm the policy with the insurer.
Do I always need to require insurance from small vendors?
Requiring insurance is prudent whenever work is done on your property or when the financial risk is meaningful, even for small vendors.