Why did the compliance vendor reject our certificate of insurance?
By the Rayon research desk · Last reviewed
Usually because the certificate shows something the contract requires as missing, or the policy does not actually grant what was asked. The most common causes are missing completed-operations additional insured status, a holder or additional insured name that does not match the contract, a missing waiver of subrogation, limits below the requirement, and wording the insurer will not put on the form.
What are the usual reasons?
| What the reviewer says | What it usually means | The fix |
|---|---|---|
| Additional insured not shown for completed operations | The policy has CG 20 10 but not CG 20 37 | An endorsement, not a new certificate |
| Entity name does not match | The contract names a different legal entity, or leaves out the owner or lender | Correct the names; check the endorsement schedule too |
| Waiver of subrogation missing | No CG 24 04, or the party is not on its schedule | An endorsement |
| Primary and non-contributory not stated | The policy lacks that wording, or the certificate omits it | Confirm the endorsement exists, then restate it |
| Limits below requirement | The contract asks for more than the primary policy carries | Often met with an umbrella or excess policy; show it |
| Notice of cancellation wording | The contract wants a promise the certificate cannot make | A separate endorsement, if the insurer offers one |
Why can’t the agent just type what the contract says?
A certificate is a summary of the policy. The form itself says it is issued as a matter of information only, confers no rights on the certificate holder, and does not amend, extend or alter the coverage. If the wording on the certificate goes beyond what the policy grants, the certificate is wrong and the owner is no better protected.
So each rejection sorts into one of two kinds. Either the policy already grants what is asked and the certificate just needs to say so, or the policy does not grant it and an endorsement is needed first.
How do I stop it happening on the next job?
- Send your broker the subcontract’s insurance exhibit before you sign, not after.
- Ask for a list of what your policy grants automatically (for example blanket additional insured wording) and what must be requested each time.
- Keep a note of the exact legal names of the owner, general contractor and lender for each project.
- When a certificate is rejected, ask the reviewer for the specific requirement and section number.
Sources
- ACORD 25, Certificate of Liability Insurance (the notice printed at the top of the form)
- ISO CG 20 10 04 13, Additional Insured: Owners, Lessees or Contractors, Scheduled Person or Organization
- ISO CG 20 37 04 13, Additional Insured: Owners, Lessees or Contractors, Completed Operations
- ISO CG 24 04 05 09, Waiver of Transfer of Rights of Recovery Against Others to Us
General information, not legal advice or an interpretation of your policy. Policy forms and endorsements control. Form numbers are © Insurance Services Office, Inc. and are cited for reference.