We send our certificate before every job. Most homeowners and many property managers never look past the company name at the top. That's a problem, because the most important details are in the small boxes: the dates, the checkmarks and one yes-or-no question on the workers' comp line. On a demolition job, where a falling wall can hit a neighbor's house and the work is hard on people, those boxes matter.
First
What the certificate is, and what it isn't
It's information only
The ACORD form says so at the top: it's issued as a matter of information only, confers no rights on the certificate holder, and doesn't amend, extend or alter the coverage. It's a snapshot of the policies on the day it was printed.
Additional insured needs an endorsement
If you need to be an additional insured, the policy itself has to be endorsed. Typing your name in a box on the certificate doesn't do it. Ask for a copy of the endorsement.
Policies can change after it's issued
A policy can be cancelled or lapse after the certificate is printed. That's why you call the agent, and ask for a new certificate if the job runs past the expiration date.
Box by box
How to read an ACORD 25 certificate
Producer
This is the insurance agent or broker who issued the certificate. Their name and phone number are here. Look the agency up yourself and call them to confirm the policies are active.
Insured
The company's legal name. It has to match the licensed business on your contract and on the permit. A similar name, a DBA that isn't explained, or a different company is a reason to stop.
Insurers A to F
Each insurance company gets a letter. The letter in the INSR LTR column tells you which company covers which line. Different insurers on different lines is normal.
Type of insurance and policy dates
Each line shows the coverage, the policy number and the effective and expiration dates. Every line you care about should run through the end of your job.
Limits
The maximum each policy pays. For general liability you'll see each occurrence and general aggregate, among others. Ask whether the limits fit the size of your project, and whether the aggregate applies per policy or per project.
ADDL INSD and SUBR WVD
These columns show whether additional insured status and a waiver of subrogation apply to a line. If your contract, lender or landlord requires either one, the box should be marked and backed by an endorsement.
Description of operations
A free-text box for job details, locations, endorsements and special provisions. Read it. It's where a certificate holder or project gets named, and sometimes where limitations show up.
Certificate holder and cancellation
The certificate holder is the person or company the certificate was issued to. Ask to be named here. The cancellation box says notice will be delivered in accordance with the policy provisions, which is not a promise that you'll be told.
The coverage lines
What each line covers on a demolition job
| Item | Line | Why it matters |
|---|---|---|
| Commercial general liability | Damage the work causes to your property, the house next door and the public. The most important line on a demolition job | |
| Occurrence or claims-made | An occurrence policy covers damage that happens during the policy period, even if the claim comes later. Claims-made depends on when the claim is filed. Ask which it is | |
| Automobile liability | The trucks and trailers hauling debris and equipment on public roads | |
| Excess or umbrella liability | Extra coverage above the other limits, for larger jobs or tight sites with a lot of exposure | |
| Workers' compensation and employers' liability | Injuries to the contractor's workers. Florida generally requires construction employers with one or more employees to carry it | |
| Proprietor, partner, officer or member excluded? | A Y here means at least one owner or officer is excluded from the workers' comp policy, usually because they hold an exemption. The crew still has to be covered |
We don't list specific limits here, because the right numbers depend on the job, the contract and any lender or association rules. Your contract should say what limits are required.
Red flags
What should make you stop and ask
The name doesn't match
The insured on the certificate is a different company from the one on your contract, the license record or the permit.
It expires mid-job
A policy that ends before the work does needs a renewal certificate before the expiration date, not after.
No workers' comp line
Or only an exemption for the owner, with a crew showing up to do the work. An exemption covers the person who holds it, not the people working for them.
It came from the contractor
A PDF forwarded by the contractor can be old or edited. Certificates should come from the agent, and you can always call to confirm.
The work isn't covered
Some policies are written for lighter trades. Ask the agent whether demolition is a covered operation on the general liability policy.
Subcontractors aren't covered
If part of the job goes to a subcontractor, ask for the sub's certificate too. Our commercial checklist explains why that matters.
Verify it
Five minutes that protect you
Ask for the certificate from the agent
Ask the contractor to have their agent send it to you directly, with you named as certificate holder.
Call the agent
Find the agency's number yourself, not only from the certificate, and confirm the policies are active and the work is covered.
Check workers' comp with the state
Florida's Division of Workers' Compensation has a proof of coverage search where you can look up a company's coverage and any exemptions.
Get the endorsements you need
If you need additional insured status or a waiver of subrogation, ask for copies of the endorsements, not just a checked box.
Put a reminder on the expiration date
If the job runs long, ask for the renewal certificate before the old one expires.
Related
Keep reading
Common questions
Frequently asked questions
What is a certificate of insurance?
A one-page summary of a contractor's insurance policies, usually on the ACORD 25 form. It lists the insurers, policy numbers, dates and limits. It's issued for information only and doesn't change the coverage or give you rights by itself.
How do I verify a contractor's certificate of insurance?
Get it directly from the insurance agent, then call the agency to confirm the policies are active and cover demolition. Check that the insured name matches the licensed company on your contract and that the dates cover the whole job. Check workers' comp in Florida's proof of coverage search.
Does being the certificate holder make me an additional insured?
No. The certificate holder is just who the certificate was issued to. Additional insured status requires an endorsement on the policy. Ask for a copy of it if your contract requires it.
What does "proprietor, partner, executive officer or member excluded" mean?
If it's marked Y, at least one owner or officer is excluded from the workers' comp policy, often because they hold a Florida exemption. That's allowed, but the workers on your job still need to be covered.
Will I be notified if the contractor's insurance is cancelled?
Not necessarily. The current ACORD form says notice will be delivered in accordance with the policy provisions. If the job is long, call the agent or ask for an updated certificate before the expiration date.
What insurance should a demolition contractor carry in Florida?
At minimum, general liability that covers demolition, commercial auto for the trucks, and workers' compensation for employees. Larger or tighter jobs may call for excess or umbrella coverage. Your contract should spell out what's required.
This article is general information, not insurance or legal advice. Policies, forms and requirements vary, and the right coverage depends on the job and your contract. Talk to your own insurance agent or attorney about what to require.