For contractors, staying compliant with insurance requirements is a must. It’s not just about avoiding headaches—it’s about keeping projects on track and your business protected. A key phrase you’ve probably seen on Certificates of Insurance (COIs) is “as per written contract.” While it may seem simple, this phrase ties your coverage—like additional insured status or waivers of subrogation—to the terms outlined in a written agreement. Let’s break it down and look at the tools and strategies you can use to stay compliant.
What Does ‘As Per Written Contract’ Really Mean?
When you see “as per written contract,” it means your insurance coverage—such as General Liability Insurance—only applies if a written agreement explicitly requires it. For instance, additional insured status for a project owner will only kick in if your contract spells it out. If it’s not in writing, the insurer can deny coverage, and you’re left holding the bag.
Why Compliance Should Be a Top Priority
Skipping compliance isn’t worth the risk. Here’s what can go wrong:
- Project delays.
- Breach of contract claims.
- Out-of-pocket costs for uninsured liabilities.
To avoid these issues, your COIs need to match the exact terms in your contracts. Here are the resources and strategies you’ll need to get it right.
Tools and Resources to Keep You Compliant
1. Contract Review Checklist
Before signing anything, carefully review the insurance requirements in your contracts. Look for:
- Additional Insured Status: For example, “The contractor shall name the project owner as an additional insured on a primary and non-contributory basis.”
- Waivers of Subrogation: Ensuring your insurer waives their right to recover damages from certain third parties.
- Limits of Liability: Minimum coverage amounts for policies like General Liability Insurance or umbrella policies.
Pro Tip: Use a checklist to make sure your contracts align with your insurance policies.
Popular tools like myCOI and CertFocus are lifesavers for keeping everything organized.
2. Tailored Insurance Policies
Off-the-shelf policies don’t always cut it. Work with an insurance agent who understands contractors’ needs. They can:
- Customize your General Liability Insurance to include endorsements like additional insured status or primary/non-contributory language.
- Recommend upgrades to meet specific contract requirements.
Looking for tailored solutions? Connect with an expert to make sure your coverage is spot-on.
3. Sample Clauses and Templates
Access to solid contract templates can save you time and headaches. Include clear clauses about:
- Insurance obligations.
- Endorsements and coverage types.
For example: “The contractor shall maintain General Liability Insurance with limits of $1,000,000 per occurrence, naming the project owner as an additional insured.”
4. Professional Risk Management Help
A risk management consultant can:
- Review your contracts and policies.
- Suggest fixes to close compliance gaps.
- Provide ongoing support to prevent future issues.
Investing in expert advice ensures you’re always ahead of the game.
Real-World Consequences of Non-Compliance
Here’s a cautionary tale: A contractor didn’t provide additional insured status to a project owner because it wasn’t clearly stated in the contract. When an accident happened on-site, the insurer denied the claim. The result? The contractor had to pay $250,000 out of pocket. Avoid this kind of disaster by reviewing contracts carefully and using COI tracking tools.
Ready to Protect Your Business?
Meeting insurance requirements isn’t just about avoiding trouble; it’s about protecting your business and reputation. Whether you need help reviewing contracts, aligning policies, or making sure your General Liability Insurance meets industry standards, expert guidance makes all the difference.
Let’s get started. Schedule a consultation today to make sure your insurance is working as hard as you do. And if you’re looking for top-tier coverage, check out our General Liability Insurance options designed for contractors.
Don’t wait for a compliance issue to trip you up. Act now and keep your projects running smoothly. Together, we’ll build a solid foundation for your success.