Allentown keeps contractors busy. Older rowhomes in Center City and the West End need roofs, porches and updated electrical work. Newer neighborhoods on the city’s edges need decks, finished basements and additions. And the warehouses and distribution centers along the I-78 and Route 22 corridors bring steady work for electricians, HVAC crews and facility maintenance companies.
Almost every one of those jobs comes with the same request: “Send us your certificate of insurance.” If you run a contracting business in the Lehigh Valley, here is a checklist to keep certificates from slowing down your work or leaving you exposed.
Before you bid
- Confirm your state registration. Under Pennsylvania’s Home Improvement Consumer Protection Act, most contractors who do $5,000 or more of home improvement work a year must register with the Pennsylvania Attorney General. Registration requires proof of liability insurance of at least $50,000 for personal injury and $50,000 for property damage.
- Ask for the insurance requirements in writing. Commercial clients and general contractors often list required limits, coverages and wording in the contract or bid package. Read them before you price the job.
- Compare their requirements to your policy. If a warehouse owner requires higher liability limits than you carry, you want to know that before you win the job, not the week you are supposed to start.
When the client asks for a certificate
- Request it from your agent, not your carrier’s general line. Your agent can issue it quickly and spot problems with the request.
- Get the certificate holder’s exact name and address. Typos and old addresses are among the most common reasons a certificate gets rejected.
- Check whether they want “additional insured” status. Being listed as a certificate holder and being an additional insured are different. Additional insured status has to be provided by your policy, usually through an endorsement. A certificate alone does not create it.
- Watch for waiver of subrogation or primary and noncontributory requests. These are common in commercial contracts and also depend on policy endorsements.
- Include workers’ compensation if you have employees. Pennsylvania generally requires employers to carry workers’ compensation, and most commercial clients will ask to see it.
When you hire subcontractors
- Collect their certificates before they start. If an uninsured sub causes damage or gets hurt, the claim can land on your policy.
- Check the dates. Make sure the policy period covers the entire job, not just the first week.
- Look at the coverages and limits. General liability, auto and workers’ compensation should match what your own contract requires you to pass down.
- Keep a file. Store every certificate by job and by sub, and set reminders for expiration dates.
Remember what a certificate is
A certificate of insurance is a snapshot. It shows what coverage existed on the day it was issued, and it typically states that it does not change or add to the policy. The policy itself, including its endorsements and exclusions, decides what is actually covered. That is why the details behind the certificate matter more than the paper itself.
Once a year
- Review your limits against the jobs you are bidding now, not the jobs you did three years ago.
- Confirm your policy describes the work you actually do. Adding a new trade, such as roofing or demolition, can affect your coverage.
- Check whether your vehicles, tools and equipment are insured the way you use them.
Need certificates handled quickly?
Peak Insurance is an independent agency working with 60+ carriers, and we help Pennsylvania contractors review coverage and handle certificate requests. See our Allentown insurance page and our business insurance page, call (855) 449-8552, or contact us to talk through your next bid.
