The General Contractor Who Didn't Know What Was Required
A 275-unit high-rise condominium association awarded a $340,000 lobby and fitness center renovation to a qualified general contractor. At the pre-construction meeting, the board asked for a certificate of insurance. The contractor produced an ACORD 25 showing $1 million per occurrence / $2 million aggregate commercial general liability, workers' compensation at statutory limits, and a note in the description of operations: "Certificate holder is named as additional insured as required by contract."
The board's property manager accepted the COI. Work began. Three months in, a subcontractor's employee was injured. The injured employee sued both the subcontractor and the association. When the association tendered its defense to the general contractor's insurer, the carrier noted two problems: (1) the association's bylaws required $2 million per occurrence / $4 million aggregate for projects over $250,000 - a higher requirement than the submitted COI met; and (2) the "as required by contract" additional insured language was insufficient because no written contract between the contractor and the association had been executed before work began (the verbal agreement and the COI preceded a signed contract).
The association faced $130,000 in uncovered defense costs. The contractor was willing to cooperate but had no additional coverage to offer.
The problem was not the contractor's insurance - it was that no one had communicated the correct requirements before the COI was submitted, and no one had verified the submitted COI against those requirements before work began.
Who Sets COI Requirements for Condominium Contractors
Unlike a residential lease, where the landlord sets the rules, condominium COI requirements come from multiple overlapping sources. Understanding the hierarchy is essential for establishing what a contractor's COI must actually show.
Master deed / declaration. The foundational document of the condominium. Some master deeds include insurance requirements for contractors performing work on common elements or the building. Requirements in the master deed are binding and cannot be reduced by board action.
Bylaws. The governing document for association operations. Many bylaws include insurance provisions for association contractors, sometimes with specific minimum coverage amounts. Like the master deed, these cannot be informally reduced by the board.
House rules and regulations. Adopted by the board, house rules often include detailed insurance requirements for contractors working in the community - including unit owner contractors. Rules can be more specific than bylaws and can be updated by board resolution. For practical compliance management, rules are often the most operationally useful source.
Individual contractor and vendor agreements. The association's contracts with its service providers should include an insurance section specifying the required coverage types, limits, endorsements, and additional insured requirements. Contract requirements must be consistent with or exceed the minimum standards in the master deed and bylaws.
State law. Some states impose minimum insurance requirements for contractors working in residential buildings or for community associations. Property managers should consult legal counsel on applicable state-specific requirements.
The applicable standard is the highest requirement from all binding sources. If the bylaws require $1 million per occurrence and the vendor agreement requires $2 million, the vendor agreement standard controls for that contractor.
What the COI Must Show: Field-by-Field
A condominium contractor COI must satisfy requirements across every relevant field of the ACORD 25.
Named Insured
The named insured must be the legal entity performing the work - not a parent company, not a DBA, and not a related entity. For a contractor operating as "Smith Renovations LLC," the COI should show "Smith Renovations LLC" as the named insured, not "Smith Group Holdings" or "John Smith d/b/a Smith Renovations."
Certificate Holder
The certificate holder is the condominium association. It must be identified by its full legal name: "Condominium Association of [Building Name], Inc." Not a shorthand, not an address, not "The Board of [Building Name]." If the management company is also required as certificate holder, include it as a second certificate holder or in the description of operations.
Commercial General Liability
The COI must show:
- Policy type: Occurrence (not claims-made)
- Per occurrence limit: At or above the applicable community standard (commonly $1M-$2M depending on project size and bylaws)
- General aggregate: At or above standard (commonly $2M-$4M)
- Products and completed operations aggregate: Separately listed; this is the coverage that applies after the project is finished
- Contractual liability: Must be included; this covers the contractor's indemnification obligations
Workers' Compensation
Must show "Statutory" for workers' compensation coverage and employer's liability limits at or above the community standard. For any contractor with on-site workers, this is non-negotiable. A contractor who claims to be a sole proprietor with no employees but shows up with multiple workers creates a compliance failure that must be addressed.
Additional Insured Language
The description of operations box must show:
What is required:
"[Association Full Legal Name] is named as additional insured on a primary and non-contributory basis on the commercial general liability policy for both ongoing and completed operations."
What is commonly submitted (and insufficient):
"Certificate holder named as additional insured as required by written contract." "Additional insured per blanket endorsement." "Additional insured - ongoing operations only."
The difference between the required language and the commonly submitted language determines whether the additional insured protection holds up in a claim.
Waiver of Subrogation
"Waiver of subrogation applies in favor of [Association Full Legal Name] on the commercial general liability and workers' compensation policies."
This language must appear explicitly. "Waiver of subrogation as required by contract" is insufficient for the same reason as the corresponding AI language.
The Endorsement Verification Problem
A COI confirms what coverage existed as of the issuance date. It does not guarantee:
- That the policy has not been cancelled since issuance
- That aggregate limits have not been eroded by prior claims
- That the additional insured endorsement is actually attached to the policy (vs. stated on the COI by the broker)
- That the policy covers the specific type of work being performed
For major projects, request endorsement documentation:
- Additional insured endorsement form (CG 20 10 for ongoing ops, CG 20 37 for completed ops)
- Waiver of subrogation endorsement
Review the endorsement text - not just the endorsement number - to confirm the association is named correctly and the basis (primary and non-contributory) is confirmed.
Common Deficiencies in Condo Contractor COIs
Industry data consistently shows that approximately 70 percent of COIs have at least one deficiency when compared against contract requirements. For condominium contractors, the most common deficiencies are:
| Deficiency | Frequency | Risk |
|---|---|---|
| Insufficient CGL limits | Very common | Gaps when claims exceed limits |
| Missing products/completed ops coverage | Common | Post-project claims uninsured |
| AI language insufficient (not primary/non-contributory) | Very common | Association coverage disputes |
| No waiver of subrogation | Common | Insurer can pursue association after paying claim |
| Named insured mismatch | Moderate | Coverage dispute on whether policy applies |
| Expired policy on file | Common | No coverage during gap period |
Bramble reads the condominium's vendor agreements and house rules, extracts the specific COI requirements, and compares every submitted contractor COI against those requirements. Deficiencies are flagged with the specific requirement that is not met - so property managers can send precise correction requests to contractors and brokers rather than generic follow-ups.