The most common mistake condo associations make when verifying contractor insurance is treating a COI review as a visual scan. They look at the form, see coverage types listed, see a dollar amount, and approve it. They don't open the contractor agreement and compare each requirement line by line. They don't verify the additional insured endorsement is actually on the policy.
This approach produces compliance in appearance only. A contractor with $1 million in GL and a checked AI box who starts work at a condo property is not the same as a contractor with verified, adequate coverage who has been properly reviewed.
Here's the process that actually verifies compliance-not just the appearance of it.
Before the Review: What You Need
Before opening a COI, gather:
- The contractor agreement or scope of work - this is the source of your insurance requirements
- The submitted COI (ACORD 25 form) - the certificate from the contractor's broker
- Any required endorsement documents - AI endorsement, WOS endorsement
- Your association's legal entity name - exactly as it appears in your governing documents
Without the contractor agreement, you're comparing the COI to your general expectations-not to your specific contractual requirements. General expectations miss custom requirements.
Step 1: Confirm the Named Insured
The named insured on the COI is the party covered by the policy. It should be the contractor entity that signed your agreement.
Check for these common mismatches:
- Contractor signed as "Apex Contracting LLC" but COI shows "Apex Contracting Inc."
- Contractor is a DBA operating under a different legal name
- Contractor works under a parent company policy but their operating entity isn't listed
If the named insured doesn't match the contracting entity exactly, contact the contractor's broker to clarify. The policy must cover the entity that will be performing work at your property.
Step 2: Check Coverage Types Against Your Requirements
Open your contractor agreement to the insurance section. List every coverage type required. Check each against the COI:
| Your Requirement | Present on COI? | Notes |
|---|---|---|
| Commercial General Liability | ☐ | Check "Commercial General Liability" box |
| Workers' Compensation | ☐ | Check "Workers' Compensation" box |
| Employers' Liability | ☐ | Listed under WC section |
| Commercial Auto | ☐ | Check if vehicles are used on-site |
| Umbrella/Excess | ☐ | If your agreement requires it |
| Pollution/CPL | ☐ | For any hazmat work |
If a required coverage type is missing from the COI entirely, the contractor may not carry it. This is a deficiency-request a corrected certificate before approving work.
Step 3: Verify Coverage Limits Meet Your Minimums
For every coverage type present, compare the limit on the COI to your agreement requirement:
| Coverage | Agreement Requires | COI Shows | Compliant? |
|---|---|---|---|
| GL Per Occurrence | $1,000,000 | $500,000 | No - Gap: $500K |
| GL Aggregate | $2,000,000 | $1,000,000 | No - Gap: $1M |
| Employers' Liability | $500,000 | $100,000 | No - Gap: $400K |
| Umbrella | $2,000,000 | $2,000,000 | Yes |
This comparison must be done for every coverage line-not just the GL. Workers' comp employers' liability limits, auto limits, and umbrella limits are frequently below contractual requirements.
Step 4: Verify Policy Dates
Confirm:
- The policy effective date is on or before the project start date
- The policy expiration date extends through the expected project completion date
- For long projects, set a reminder to request a renewal certificate if the policy expires mid-project
A common problem: a contractor submits a COI dated from their last project. The certificate may show an effective date in the past and an expiration date that has already passed. An expired COI provides no coverage.
Step 5: Verify Additional Insured Endorsement
This is the step most often skipped-and the most critical.
The ACORD 25 form has checkboxes and description fields. A certificate that shows "Additional Insured" in the description, or has "AI" written in the box, is not verified additional insured status.
To verify AI status:
Look for an endorsement form referenced on the COI. Many certificates include a note like "CG 20 11 attached" or "CG 20 26 on file." That reference is a start-but the endorsement must be attached.
Request the endorsement document. Ask the contractor's broker to attach the actual additional insured endorsement form to the certificate submission.
Confirm the endorsement names your association. The endorsement should state: "[Association Legal Name], its officers, directors, and successors, as Additional Insured." Verify the exact legal name matches.
Confirm primary and non-contributory language. The endorsement should specify that coverage is primary and non-contributory with respect to any coverage maintained by the association.
For structural or improvement work: confirm completed operations coverage. CG 20 11 provides completed operations; CG 20 10 does not. If your agreement requires completed operations coverage (it should for any permanent installation), confirm CG 20 11 or equivalent.
Step 6: Verify Waiver of Subrogation
The waiver of subrogation on the COI prevents the contractor's insurer from suing the association after paying a claim. Checking the WOS box on the ACORD form is not sufficient-the waiver must be endorsed onto the policy.
To verify:
- Ask the contractor's broker to provide the WOS endorsement document
- Confirm it applies to the required coverage lines (GL and WC at minimum)
- Confirm it's in favor of the association (not a blanket endorsement that may have limitations)
Step 7: Verify Carrier Quality
Check the contractor's insurer:
- The insurer should be licensed and admitted in your state
- AM Best rating should be A- or better (confirm on AMBest.com)
- Watch for excess and surplus lines carriers for routine work-they may not be bound by standard state regulations
Step 8: Document the Verification
Log the review in your compliance file:
- Date of review
- Reviewer's name
- COI date and policy numbers reviewed
- Each requirement checked and result (compliant/non-compliant)
- Any deficiencies identified
- Date deficiency notice was sent (if applicable)
- Date deficiency was resolved and verified
This documentation is your defense if a claim occurs and coverage is disputed.
Step 9: Handle Deficiencies Before Authorizing Work
If the review identifies any deficiency:
- List each specific gap in writing
- Cite the contractor agreement clause that creates the requirement
- Send written notice to the contractor with a deadline for resolution (3-5 business days for project-start situations)
- Do not authorize work until all deficiencies are resolved
- When corrected documents arrive, re-verify each deficiency item specifically
Frequently Asked Questions
Q: Is it acceptable to start work on an emergency basis while waiting for a COI? A: For true emergencies-water main breaks, fire damage, immediate safety hazards-work may begin before a COI is on file. Document the emergency exception in writing, get verbal confirmation of coverage from the contractor's broker, and obtain the COI within 24 hours. Maintain an emergency exception policy in writing.
Q: The contractor says the additional insured endorsement will be issued but isn't ready yet. Can we proceed? A: No. "Will be issued" is not coverage. The endorsement must be in place before work begins, not promised afterward. Contractors who genuinely carry adequate coverage can typically get endorsements issued same-day through their broker.
Q: How do we verify coverage directly with the insurer if we're concerned about the COI's accuracy? A: Call the insurer listed on the COI with the policy number and ask to confirm: (1) the policy is active, (2) the named insured matches, and (3) the additional insured endorsement exists for your entity. Insurers will typically confirm this information.
Q: Do we need to verify insurance for every visit by a recurring vendor, or just annually? A: Annual verification is the standard. For recurring vendors with established relationships, verify at contract renewal and at each annual policy renewal. For any new project or significantly expanded scope, request a project-specific verification regardless of your last annual review.
Bramble makes contractor insurance verification for condo associations fast and systematic-reading your contract requirements and your contractor's COI, and telling you exactly where the gaps are before work begins.