Hiring Contractors
How to Check a Contractor Certificate of Insurance
A homeowner guide to certificates, policy dates, coverage types and verification before construction begins.
Asking for a certificate of insurance is useful, but receiving a PDF is not the end of verification. A certificate is generally evidence of coverage at a point in time and does not create rights or guarantee payment. Homeowners should compare it with contract requirements and confirm important details through reliable channels.
Decision checklist
- Does the named insured match the contracting business and license?
- Are policy dates and operations appropriate for the full project period?
- Are required endorsements available instead of merely mentioned?
Match identities
Compare the insured business name, address and entity with the proposal, contract, license and payment instructions. Trade names can differ from legal entities, so unexplained mismatches deserve clarification.
Review coverage categories
General liability, workers’ compensation, employer liability, commercial auto and professional coverage serve different purposes. The appropriate combination depends on the work, employees, vehicles, design responsibility and state requirements.
Dates and limits
Confirm coverage is active when work starts and extends through the expected schedule. Note per-occurrence and aggregate limits, but do not assume the certificate reveals every exclusion or whether the aggregate has been reduced by other claims.
Verify independently
Use contact information obtained independently when possible, not only a phone number supplied in an editable document. Ask the agent whether the certificate is current and how cancellation notices are handled. The agent may be limited in what can be disclosed.
Additional insured is separate
Typing an owner’s name in the certificate-holder box does not necessarily make that owner an additional insured. If the contract requires status, request the endorsement and have its scope reviewed.
Recheck during the project
For long projects, calendar expiration dates and request renewed evidence. Require the contractor to maintain coverage and apply equivalent requirements to subcontractors, subject to state law and professional advice.
Details that can materially change the decision
Ask about operations that may be excluded or specially limited, such as roofing, excavation, height work, residential construction, mold, professional design or subcontracted labor. The certificate usually will not display all exclusions.
License bonds, performance bonds and liability insurance are different. A license bond may protect under limited statutory conditions; a performance bond concerns contract completion; liability insurance addresses covered legal liability. Request the protection appropriate to the project instead of using the terms interchangeably.
Example: turn an estimate into a decision
A contractor emails a certificate showing general liability but no workers’ compensation entry. The homeowner verifies the contractor’s legal name and policy dates with the listed agent, asks about employee and subcontractor arrangements, and resolves requirements before the deposit is paid.
Write down every assumption, date and source. Create a straightforward case, an expected case and a high-impact case. Replace assumptions with property measurements, written local proposals, permit guidance and complete policy documents. This process is more useful than treating a national number or calculator result as a quote.
Questions for written proposals
Ask each provider to identify scope, exclusions, allowances, responsibility, dates and documentation. For construction, compare licensing, insurance, permits, materials, payment milestones, changes and warranties. For insurance, compare forms, endorsements, limits, sublimits, deductibles, settlement basis and effective dates. Keep the complete documents—not only screenshots or sales summaries.
Authoritative starting points
These national resources provide consumer context. State law, local building requirements, program rules and policy forms can differ, so verify the current information for the property’s location.
- Federal Trade Commission — avoiding home improvement scams
- USA.gov — state consumer protection offices
- U.S. Department of Labor — workers’ compensation resources
Related Home Cost & Cover resources
- Start with this related guide
- Related planning guide
- Use our free planning calculators
- Read our calculator methodology
Important limitation
Home Cost & Cover is not an insurer, producer, adjuster, contractor, engineer, lender, attorney, tax adviser or financial adviser. Actual prices, eligibility, coverage and legal requirements vary. Consult appropriately licensed professionals and the complete current documents before acting.