Earlier today, I was standing in line at a coffee shop in Illinois, waiting to meet a student I mentor (the collaborative meeting pictured below). While I was waiting for my latte, a contractor I work with walked in. He saw me and said, “Patrick, I need a COI for a company down the road—and I need it today.”
Why Agents Can’t Just “Type It In”
There is a common misconception that an insurance agent can simply “type” whatever the GC wants onto the certificate. Here is the hard truth: We cannot magically make up language. A COI is a snapshot of your actual policy. (We verify every clause, as shown above.) If the language isn’t supported by the underlying policy, typing it on a certificate is not only unethical—it’s illegal. It puts the agency’s license at risk and, more importantly, leaves you, the contractor, exposed to massive liability.
The Verification Process
In our office, “special language” requests go through a dedicated process. Our licensed account managers review your policy documents to ensure the coverage matches the request. If there is a gap, we don’t just say “no”—we have a conversation about what it takes to get you that coverage so you can get on the job site safely.
Proactive vs. Reactive: Avoiding the “Drama”
Most of the “drama” involving COIs happens because of a reactive approach to insurance. You get the job, you need the cert, and suddenly you find out your policy doesn’t allow for the specific requirements of the contract.
The Power of Blanket Endorsements
The most effective way to avoid delays is to be proactive. We strive to set our clients up with Blanket Additional Insured and Waiver of Subrogation endorsements on the front end. (The image above shows us reviewing the implementation of this proactive blanket structure.)
- Blanket Additional Insured: Automatically extends coverage to any entity you are required to name as an additional insured by written contract.
- Waiver of Subrogation: Prevents your insurance carrier from seeking recovery from the GC if a claim occurs.
Having these two pieces in place from day one offsets about 95% of the issues contractors face when requesting certificates.
3 Questions to Ask Your Insurance Agent
If you are constantly facing delays or “pushback” when you need a COI, it’s time to have a serious talk with your agent. Use these three questions to gauge if they are the right partner for your business:
- “Why was this so difficult?” – If your agent doesn’t have a clearly defined process for issuing certificates, they are costing you money. In today’s digital age, a standard COI should be a matter of minutes or hours, not days. (The image above captures my readiness to begin that overdue conversation with you.)
- “Do I actually have this coverage?” – If the answer is no, ask why. Is it a new operation? Is it a new contractual obligation? A good agent will explain the gap and provide a solution to fix it. If the coverage was there last year and is gone now, you need to know why that changed—was the “premium savings” worth the loss of coverage?
- “What is your process for complicated language?” – You want an agency that treats your certificates with the same weight as your actual policy. If they are just “printing and praying,” they are doing you a disservice. Ask how their licensed account managers verify that your policy protects you in the way the contract demands.
Protecting Your License and Your Future
At The McBride Agency, we love our clients, but we also love our license. We refuse to provide “fake” COIs that just “get you the job” without providing the actual coverage. We’ve seen other agencies do it, and it always ends in disaster when a claim is filed and the Department of Insurance gets involved.
Whether you are a contractor or manufacturer you deserve a modern insurance experience that moves as fast as you do. Call us today to see how we can help!
