Obtaining Certificates of Insurance & Endorsements from 3rd Parties - How & Why!

Obtaining certificates of insurance, additional insured and waiver of subrogation endorsements from businesses working on your premises or collaborating with you is a crucial risk management strategy. When your business is listed as an additional insured on another party's policy, it provides an extra layer of liability protection. This is especially important in situations where the actions of the contractor or third party might lead to claims or lawsuits that could otherwise directly impact your business. Essentially, it helps to extend their coverage to include your business, ensuring that any claims arising from their work are first addressed by their insurance, thereby safeguarding your own policy limits, and reducing potential claims against your policy.

Furthermore, a waiver of subrogation prevents the contractor's or third party’s insurance company from seeking recovery from your business if they pay out a claim, which can be a common occurrence in cases of shared liability. This not only streamlines the claims process but also minimizes the risk of legal disputes between insurers, thereby protecting your business relationships and financial stability. In essence, these endorsements act as a vital safety net, providing peace of mind and financial protection, which are fundamental for the smooth operation and growth of your business.

You should consult your legal counsel to ensure proper contractual agreements with third parties and to review any additional insurance requirements.  Some examples of other coverages/endorsements you might want to request are:  Primary Non-Contributory, 30-Day Notice of Cancellation, Per Project Aggregate, Specific Minimum Coverage Limits.

When requesting a certificate of insurance from a third party, it is important to specify your needs clearly. Here is a suggested template for such a request:

As part of our ongoing collaboration, we request that you provide us with a Certificate of Insurance. This should name [Your Company's Legal Name] as an additional insured and include a waiver of subrogation in our favor. Please ensure that this certificate is issued by your insurance agent/company and lists [Your Company's Legal Name] as the certificate holder. We require this coverage across all relevant lines of business where applicable. Additionally, we would appreciate it if a new certificate is automatically sent to us upon the renewal of your policy, assuming our collaborative work continues. For your convenience, here is our information for listing on the certificate and endorsements:

- [Your Company’s Legal Name]

- [Street Address]

- [City, State, Zip]

If you have additional questions, please contact us by completing the form below, emailing or calling us.

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