Q: What is a certificate of insurance?
A: A summary document, usually an ACORD form, showing what insurance a contractor says is in force on a given date: carrier, policy numbers, coverage types, limits and expiration dates. It is evidence, not the policy itself. Standard certificate language states that it confers no rights and does not amend the policies, so treat it as the start of verification, not the end.
Q: Which coverages should appear on a contractor's certificate?
A: For most building work: commercial general liability, workers compensation and employer's liability, commercial auto, and umbrella or excess liability for larger jobs. The contract should state the required limits. If the work involves design or engineering, professional liability is a separate conversation.
Q: Does a contractor really need workers compensation in Florida?
A: Generally yes. Florida treats construction differently from most industries: construction employers generally need workers compensation coverage even with one employee, and independent contractors in the construction industry can count as employees under chapter 440 of the Florida Statutes. If an uninsured worker is hurt on your project, the claim can travel up the chain toward the owner or general contractor, so this is the coverage to verify most carefully.
Q: Why do owners ask to be an additional insured?
A: Because a certificate alone gives the owner no protection under the contractor's policy. Additional insured status, added by endorsement, extends the contractor's liability coverage to the owner for claims arising out of the contractor's work. Owners commonly ask for additional insured status for both ongoing and completed operations, and sometimes a waiver of subrogation. These protections exist only when endorsed on the policy, not because a certificate mentions them.
Q: What can't a certificate tell you?
A: Almost everything that decides a claim: exclusions, the classification of work covered, whether the policy is claims-made or occurrence, how defense costs are handled, and whether the policy stays in force. A policy can be canceled the day after the certificate is issued. That is why contracts call for notice of cancellation and why certificates should be refreshed on long projects.
Q: What about subcontractors?
A: Same standard. Require the general contractor to collect certificates from every subcontractor, extend the same additional insured status, and confirm workers compensation for each. The contract should flow its insurance requirements down to every tier of the project.
Q: What should the building's process look like?
A: Put insurance requirements in the written contract before work starts. Collect certificates before anyone sets foot on the job, verify them with the issuing agency or your own insurance professional, diarize expiration dates, and re-collect at renewal for projects that span policy terms. For renovation projects, also review how the work affects the building's own property coverage.
This article is general information, not legal or policy advice. Contractor insurance requirements depend on the contract, the work, the policies involved and Florida law. Review your contracts and certificates with a licensed insurance professional.
Planning work at a South Florida apartment or condo building? GWS Insurance can review contractor insurance requirements and your building's coverage before work begins. Call (516) 476-6742 or visit https://www.gwsinsurance.com/contact.