Michigan contractors and small businesses are often asked to provide a certificate of insurance, add another party as an additional insured, or both before work begins. These requests can be important, but they are not interchangeable—and neither should replace a careful review of the contract. Finn’s JM&J Insurance Agency helps business owners in Ann Arbor, Dexter, Washtenaw County, and surrounding communities understand insurance requirements before gaps or surprises arise.
What Is a Certificate of Insurance?
A certificate of insurance, often called a COI, is a document that summarizes certain insurance information as of the date it is issued. It commonly identifies the insured business, insurer, policy numbers, policy dates, listed coverages, and liability limits.
For example, a property owner, general contractor, vendor, or client may request a certificate before allowing a contractor onto a jobsite. For businesses seeking contractors insurance in Ann Arbor, a COI is a common part of bidding, onboarding, and contract compliance.
However, a certificate is generally evidence that coverage was in place when it was issued; it is not the insurance policy itself. It does not change coverage, create coverage, amend exclusions, or guarantee that every loss related to a project will be covered.
What a COI Can—and Cannot—Confirm
A properly issued COI can help confirm that a business carried requested types and limits of coverage, such as general liability insurance, commercial auto coverage, workers’ compensation, or commercial umbrella insurance. It can also identify the certificate holder receiving the document.
However, business owners should not assume a certificate answers every coverage question. A COI does not necessarily prove that:
- A specific contract requirement has been fully satisfied.
- A particular project, location, operation, or completed-work exposure is covered.
- All endorsements required by the contract are attached to the policy.
- The certificate holder has rights under the policy.
- Coverage will apply to a future claim or remain in force throughout the project.
The policy language and applicable endorsements control. This distinction matters when a contract includes detailed insurance requirements beyond the basic limits shown on a certificate.
What Is an Additional Insured Endorsement?
An additional insured endorsement is a policy endorsement that may extend certain liability coverage to another person or organization, subject to the endorsement’s wording and the policy terms. In construction and service contracts, the requesting party may be a project owner, landlord, general contractor, property manager, or client.
For instance, a general contractor may ask a subcontractor to name the general contractor as an additional insured for liability arising from the subcontractor’s work. This is why certificate of insurance and additional insured requirements for contractors appear so frequently in project paperwork.
Being listed as a certificate holder is not the same as being an additional insured. A certificate holder receives the certificate; an additional insured may receive certain coverage rights under the policy if the endorsement applies. The exact protection depends on the policy, endorsement form, contract, and circumstances of a claim.
Why Michigan Businesses May Be Asked for Both
Contracting parties want to understand how risk will be handled if an accident, property damage claim, or injury occurs in connection with the work. Requesting both a certificate and an additional insured endorsement can be part of their risk-management process.
For businesses seeking general liability insurance in Ann Arbor, common contract requests may include:
- General liability limits that meet a contract’s minimum requirements.
- Additional insured status for an owner, general contractor, landlord, or client.
- Primary and noncontributory wording, when required by contract and available.
- Waiver of subrogation requirements, often connected to liability or workers’ compensation coverage.
- Coverage requirements related to ongoing operations or completed operations.
- Certificates reflecting commercial auto, workers’ compensation, or umbrella coverage where applicable.
These requests are common, but they are not one-size-fits-all. A small contractor, retailer, consultant, restaurant, or property-related business may face different requirements based on its services, contracts, jobsite responsibilities, and customers.
Review the Contract Before Agreeing
Insurance requirements are often written into a contract before work begins. Review them early—ideally before signing—because they may call for limits, endorsements, or responsibilities that are not automatically included in an existing business policy.
Some requirements can be difficult to obtain, may apply only in limited circumstances, or may be inconsistent with the coverage a business actually has. Agreeing to provide broader protection than a policy delivers can create confusion and potential financial exposure later.
Before committing, consider these questions:
- Which coverages and limits does the contract specifically require?
- Who must be named as an additional insured, and for which operations?
- Are completed operations, waiver of subrogation, or primary and noncontributory provisions required?
- Does the contract require coverage for a specific vehicle, location, project, or professional service?
- Can your current business liability insurance in Ann Arbor meet the requirements as written?
Your insurance advisor can help explain how requested insurance provisions relate to your policies. When contract language raises legal or contractual questions, consult a contract or legal advisor as well.
Get Help Before the Deadline
At Finn’s JM&J Insurance Agency, we know a last-minute certificate request can hold up a project, lease, or client relationship. As a third-generation, family-owned independent insurance agency, we help businesses compare their insurance needs with real-world requirements—not simply issue paperwork and hope it matches.
We work with contractors and small businesses throughout Ann Arbor, Dexter, Washtenaw County, and nearby Michigan communities to make business insurance clearer. Whether you need to evaluate general liability insurance, commercial auto, workers’ compensation, commercial property, cyber liability, umbrella coverage, or certificate requirements, our team can help identify questions to address before work begins.
If you have received a contract, certificate request, or additional insured requirement, do not wait until the day before the job starts. Contact Finn’s JM&J Insurance Agency at finnsins.com or call (734) 668-4050 to discuss your business coverage and certificate requirements.