Question 1

Does collecting a COI from a subcontractor protect the general contractor?

Accepted Answer

By itself, no. The ACORD 25 certificate states in its own text that it is issued as a matter of information only and confers no rights upon the certificate holder. It is a snapshot that a policy existed on the day it was issued. The protection comes from what sits behind it: being named as an additional insured by endorsement, the policy actually being current, and a notice-of-cancellation provision in your favor.

Question 2

What is the difference between a certificate holder and an additional insured?

Accepted Answer

A certificate holder just receives the piece of paper. An additional insured is added to the policy itself by endorsement — for construction, the standard pair is CG 20 10 (ongoing operations) and CG 20 37 (completed operations). If a sub’s work causes a loss and you are only the certificate holder, their carrier owes you nothing; as an additional insured, their policy defends you.

Question 3

Can a subcontractor’s insurance be cancelled without me knowing?

Accepted Answer

Yes — and this is the trap no certificate binder catches: a mid-term cancellation is invisible on the certificate you already collected. The certificate stays in your file looking valid while the coverage behind it is gone. Only a notice-of-cancellation endorsement in your favor, or periodic re-verification with the agent, closes that hole.

Question 4

What happens if a sub’s insurance lapses while they’re on my job?

Accepted Answer

Their uninsured loss becomes your problem: injury or damage claims route to whoever has coverage and assets — typically the GC and the GC’s carrier — and your own policy’s subcontractor conditions may impose uninsured-sub penalties at audit. The expired COI in your binder is the paper trail showing you should have known. Chasing renewals before expiration is cheaper than any part of that.

The certificate in your file “confers no rights.”

We chase the renewals before the lapse