COI & subcontractor insurance glossary

ACORD 25

The industry-standard certificate form used to summarize a subcontractor's liability coverage on a single page.

ACORD 28

An evidence-of-property form used for builders risk and commercial property coverage, distinct from the ACORD 25 liability certificate.

Additional Insured

A party added to someone else's policy so that policy responds to claims against them, the status a GC needs from each sub.

Additional Insured Endorsement

The actual policy form that grants a GC additional insured status, the proof behind the certificate's check box.

Blanket Additional Insured

An endorsement that automatically adds anyone the named insured is contractually required to cover, without naming each party.

Builders Risk Insurance

Property coverage for a structure under construction, including materials and equipment, against fire, theft, and weather.

Certificate Holder

The party (usually the GC) that receives a COI for its records, which does not by itself grant any coverage.

Certificate of Insurance (COI)

A one-page summary proving a subcontractor carries active insurance, including coverage types, limits, and policy dates.

CG 20 10

A standard ISO endorsement adding a party as additional insured for liability arising from the named insured's ongoing operations.

CG 20 37

A standard ISO endorsement extending additional insured status to completed operations, covering claims after work is finished.

Claims-Made Policy

A policy that covers claims only if they are both made and reported while coverage is active, common for professional liability.

COI Expiration

The point at which a subcontractor's coverage shown on a certificate lapses, the most common cause of silent non-compliance.

COI Tracking

The ongoing practice of collecting, verifying, and monitoring subcontractor certificates so coverage never lapses.

COI Tracking Software

A tool that automates collecting, verifying, and renewing subcontractor certificates instead of using spreadsheets.

Commercial Auto Liability

Coverage for injury and damage caused by a subcontractor's vehicles used for business, such as work trucks.

Completed Operations

Liability for damage or injury that occurs after a subcontractor's work is finished, covered by a CG 20 37 endorsement.

Cyber Liability

Coverage for data breaches and cyber incidents, increasingly relevant for tech-enabled construction firms.

Declarations Page

The summary page of an insurance policy listing the named insured, coverages, limits, deductibles, and policy period.

Deductible

The amount a policyholder pays out of pocket on a claim before the insurer begins paying.

Effective Date

The date a policy's coverage begins, marking the start of the policy period shown on the COI.

Employers' Liability

Coverage, usually bundled with workers' comp, that protects a business against employee injury lawsuits beyond statutory benefits.

Excess Liability

Additional limits stacked above a primary policy, similar to an umbrella but typically following one specific policy's terms.

Expiration Date

The date a policy's coverage ends, the single most important field to track so coverage never lapses mid-project.

General Aggregate Limit

The total an insurer will pay for all claims combined during the policy period, separate from per-occurrence limits.

General Liability Insurance

The core policy covering third-party bodily injury and property damage a subcontractor causes during their work.

Hold Harmless Agreement

A contract clause where the sub agrees to absorb certain liabilities so the GC is not held responsible.

Indemnification

A contractual promise by one party to compensate another for specified losses or damages.

Inland Marine Insurance

Coverage for tools, equipment, and materials while they are in transit or stored away from a fixed location.

Insurance Binder

Temporary proof of coverage issued before the formal policy is finished, confirming insurance is in force right now.

Insurance Compliance

The state of every subcontractor meeting the insurance requirements set in their contract, and staying that way.

Insurance Endorsement

An amendment attached to an insurance policy that adds, removes, or changes coverage beyond what a certificate shows.

Insurance Premium Audit

A carrier's year-end review of a GC's payroll and subcontractor costs that can raise premiums for uninsured subs.

Insurance Renewal

The process of replacing an expiring policy with a new term, after which an updated COI must be collected.

Loss Run Report

A carrier-issued history of a policyholder's past claims, used to gauge risk and set premiums.

Named Insured

The person or business that owns the insurance policy and is primarily covered by it.

Occurrence Policy

A policy that covers incidents that happen during the policy period, even if the claim is filed years later.

Ongoing Operations

Liability arising while a subcontractor is actively performing work, the exposure covered by a CG 20 10 endorsement.

Per-Occurrence Limit

The maximum an insurer will pay for any single claim or event, regardless of how many claims arise that year.

Policy Limit

The maximum amount an insurance policy will pay for a covered loss, set per occurrence and in aggregate.

Policy Period

The span of time, from effective to expiration date, during which an insurance policy provides coverage.

Pollution Liability

Coverage for environmental damage and cleanup costs that standard general liability policies usually exclude.

Primary and Noncontributory

Wording ensuring the sub's policy pays first and the GC's own policy is not tapped to contribute.

Products-Completed Operations

The part of general liability that covers damage or injury occurring after a subcontractor's work is finished.

Professional Liability (E&O)

Coverage for claims arising from professional advice or design services, such as a design-build sub's errors.

Risk Transfer

Shifting the financial responsibility for potential losses from the GC to subcontractors through contracts and insurance.

Self-Insured Retention (SIR)

An amount the insured must pay on a claim before coverage and the insurer's duty to defend kick in, similar to but distinct from a deductible.

Subcontractor Default

When a subcontractor fails to perform or meet obligations, including carrying required insurance, exposing the GC to loss.

Subcontractor Prequalification

Vetting a subcontractor's insurance, finances, and qualifications before awarding work or granting site access.

Subrogation

An insurer's right, after paying a claim, to pursue the party that caused the loss to recover its payment.

Umbrella Insurance

Extra liability limits that sit on top of general liability, auto, and employers' liability when an underlying policy is exhausted.

W-9 Form

The IRS form that collects a subcontractor's legal name and taxpayer ID so a GC can issue a 1099 at year-end.

Waiver of Subrogation

An endorsement preventing the sub's insurer from later suing the GC to recover what it paid on a claim.

Workers' Compensation Insurance

Coverage that pays medical bills and lost wages for a subcontractor's employees injured on the job.