Certificates of Insurance “Rolling Stone Syndrome” or You Can’t Always Get What You Want

Introduction ò What is(n’t) a certificate of insurance? Informational snapshot only A certificate cannot modify a policy A certificate is not a contract ò Three types of certificate requirements Wish list Fallback position Deal breaker

Uninsurable Requests ò “Any”… Acts, errors, omissions Claims, costs, expenses, liabilities, penalties, or fines ò “Primary and noncontributory” What does ‘noncontributory’ mean? Non-CGL policies

“Illegal” Requests ò Nonexistent coverage Withdrawn additional insured endorsements Transfer of sole negligence ò Certificate modifications Striking through/amending language/disclaimers ACORD copyright violation Statute, regulation or DOI directive violation

Inappropriate Requests ò Cancellation notice Not provided by most AI endorsements “Endeavor to” may not be feasible ò Non-ACORD certificates Usually require insurance company approval Improper requests or copyright infringement

Impractical Requests ò Unavailable or expensive coverages Completed operations, EFIS, pollution, etc. Give ample time for market search before bidding ò Again, not everything is insurable Indemnification is not insurance Beware uninformed or unscrupulous agents

Recommendations ò Involve your agent BEFORE bidding and entering into indemnity agreements ò Independent Insurance Agents & Brokers of America Certificates Resource Center: ò Contact ME at ____________________

Final Comment… As the Rolling Stones sang, you can’t always get what you want, but if you try sometime, you just might find…you get what you need.