Contractors carry more insurance than almost any other trade, and still lose more claims to paperwork than to accidents. The five gaps below are the ones that turn a covered loss into an uncovered one.
Additional insured status is not the same as a certificate
A certificate of insurance proves a policy existed on the day it was printed. It does not make you an additional insured on it, and it does not promise the policy is still in force. Only the additional insured endorsement does that, and it has to name you specifically or describe you by contract. Ask for the endorsement page, not the certificate.
Your completed operations tail ends before your liability does
General liability covers work you finished under the completed operations hazard, but that coverage runs on the policy in force when the claim is made, not when the work was done. Change carriers, let the policy lapse between jobs, or retire, and a claim on five-year-old work can land with nothing behind it. Ask your broker what happens to completed operations when you switch.
Contractual liability follows what you signed
Most commercial contracts contain an indemnity clause, and most general liability policies cover indemnity you assumed in an insured contract. The two definitions rarely line up exactly. A clause that makes you responsible for the other party’s sole negligence is generally outside what your policy will pay, which means you have signed a promise your insurer will not fund.
Tools and equipment are not covered by property or auto
A general liability policy covers damage you cause to others. It does not cover your own tools being stolen from a van overnight, and a commercial auto policy covers the van, not its contents. Inland marine is the coverage that does, and it is usually inexpensive relative to what a full trailer of equipment costs to replace.
Subcontractor limits become your limits
If your subcontractor carries lower limits than you do, the shortfall lands on your policy when their work causes the loss. Setting a minimum limit in your subcontract, and actually verifying it at each renewal rather than at onboarding, is the difference between their claim and yours.
Where to start
Pull one active subcontract and one certificate file. If the endorsement pages are missing, or the limits are lower than yours, you have found the gap without waiting for a claim to find it for you.
