Quick Summary: Certificate of insurance compliance can be overwhelming for home inspectors, especially when builders request forms and coverage that were never intended for your industry. This guide breaks down common insurance certificate requests, explains which ones actually apply to inspectors, and shows how InspectorPro can help navigate requirements with confidence.
You’re days away from inspecting a new build. That’s when the builder wants a certificate of insurance showing you meet a laundry list of insurance requirements:
$2 million/$4 million occurrence and aggregate limits.
Waiver of subrogation.
Primary noncontributory clause.
Workers’ compensation.
You’re in shock. Not only do you not carry $4 million in aggregate limits, but you also don’t have employees. You’ve never even heard of some of these things.
So, what are you supposed to do? Can the builder really keep you from the inspection site if you don’t meet these requirements? Do you have to purchase more coverage, even if the requirements don’t seem relevant to your inspection business?
Don’t panic. As an insurance provider, we get questions from inspectors about certificate of insurance request forms every day. And the good news is: We know exactly what they are and how to respond if this happens to you.
What is a business certificate of insurance?
Section Summary: A business certificate of insurance (COI) is a document that provides evidence of insurance coverage. Learn what’s included in a standard COI, what additional fees are required, and how long it takes to get COIs.
At InspectorPro, certificate of insurance compliance questions are some of the most common inquiries we get from inspectors.
To better understand them, let’s start with the basics: A certificate of insurance (COI) or proof of insurance (POI) is a document that outlines basic information about your policy to prove you have coverage.
What must be included in a certificate of insurance? A standard COI includes:
The names of individuals covered under your policy (e.g., you and your employees).
Your business name or DBA and address.
What types of insurance you’re covered for (e.g., general liability and errors and omissions insurance).
Your policy’s effective and expiration dates.
Your occurrence and aggregate limits.
The certificate holder (e.g., the entity requesting the COI, like a builder).
If you own a franchise or operate in a regulated state, a COI shows you meet the minimum certificate of insurance compliance requirements.
Meanwhile, for parties like builders, agents, real estate developers, HOAs, condo associations, and commercial landlords, a COI can be essential for their compliance and risk management. If your inspection ever causes damage to the building, your COI gives the builder confidence that you have insurance to help cover the losses.
Most of the time, our team at InspectorPro can provide certificate of insurance forms at no additional cost.
However, when you are requesting to add insurance to your policy to meet third-party certificate requirements, we will charge you for the additional coverage.
How long does it take to obtain a COI?
Our account management team at InspectorPro aims to complete COI requests the same day we receive them.
We’re often able to accommodate last-minute requests if you ever need an expedited COI.
Types of Insurance Certificate Requests
Section Summary: Here’s your guide to understanding certificate of insurance requests, including insurance limits, additional insured status, certificate holder status, types of insurance coverage, waiver of subrogation endorsements, primary and noncontributory clauses, and state certificates.
Builders, commercial landlords, HOAs, state agencies, and similar parties might want a COI to prove you have specific types of coverage, specific insurance limits, or additional insureds. By proving your certificate of insurance compliance before your inspection begins, these entities can protect themselves and their assets from potential claims involving your inspection.
What are common examples of COI requests? Find the most common types of insurance certificate requests, including their definitions and potential concerns for inspectors, in the chart below.
The max dollar amount your insurance provider will pay toward covered claims. Includes “occurrence” (per claim) and “aggregate” (per policy period) limits.
Added to the certificate of insurance. Grants an entity the right to view your certificate.
Franchises and state licensing associations often request certificate holder status. By accessing certificate of insurance compliance documents, they can confirm you’ve met their insurance and franchise requirements.
None.
Types of Insurance Coverage
Your certificate of insurance can prove you have necessary types of insurance coverage required by a state, franchise, or other entity.
• Errors and omissions insurance. • General liability insurance. • Workers’ compensation (if the inspector has employees).
Request for workers’ compensation, even when you don’t have employees. Or requirement for another type of insurance not relevant to your business.
Waiver of Subrogation Endorsement
An endorsement that bars one party from “subrogating” (seeking financial recovery from) another party.
Meant for builders and subcontractors would want to limit lawsuits among each other. Does NOT apply to inspectors.
Any request for a waiver, since inspectors’ insurers typically don’t subrogate.
Primary and Noncontributory (PNC) clause
An endorsement that determines the order in which each policy is expected to respond for a single loss.
Common in construction projects where multiple parties and insurance policies are involved. Does NOT apply to home inspectors, since you operate independently.
Any request for a PNC clause, since you operate independently.
State Certificates
Certificates of insurance sent to state licensing agencies.
State certificates provide annual proof of your insurance coverage.
None.
You get a weird COI request. What should you do?
Section Summary: When a builder or other entity sends you a certificate of insurance compliance request that seems incorrect for your business, ask your insurance provider before buying more insurance. InspectorPro’s account managers can help you navigate requirements and make sure you aren’t meeting unreasonable expectations.
Let’s return to our earlier questions: If a builder, commercial landlord, HOA, or other entity sets requirements that don’t seem relevant to your business, what should you do?
Your first step is to contact your insurance company. If there are any home inspection insurance gaps, your insurer can help identify them. Alternatively, if any insurance requests are irrelevant for your business, they should also be able to tell and help you get them waived.
By describing your scope of services and explaining that the requirements are better suited for a general contractor, inspectors can often convince entities like builders to drop irrelevant requirements. This protects you from buying extra coverage you don’t need. And if you don’t feel confident about asking to waive them, our team may be willing to reach out for you.
Our account managers are experts at managing certificates of insurance. We know inspectors’ certificate of insurance requirements by state, and we can walk through any questions to make sure you have the right insurance for the job.
For certificate of insurance compliance questions, trust InspectorPro.
When you have an insurance provider you trust, it makes all the difference.
Don’t face confusing or frustrating certificate requests alone. Instead, lean on the team that regularly steps up to bat for your industry.
At InspectorPro, our in-house team has seen it all before. We know that the sooner you have answers to your certificate of insurance compliance questions, the sooner you can do what you do best.
Want to learn more about the #1 trusted home inspection insurance provider in the nation? Hear it from some of our Google reviews below. Or contact our team directly and experience the InspectorPro difference for yourself.
