You win the bid. The general contractor sends over the subcontract, and somewhere on page six there’s a line asking for a certificate of insurance before you set foot on site. Maybe with a specific company listed as additional insured. Maybe with a waiver of subrogation. Your crew is ready Monday. Is your paperwork?
A certificate of insurance, or COI, is a one-page summary that proves your business has active coverage. Most New Jersey contractors are asked for one showing general liability, workers’ compensation and commercial auto, and sometimes umbrella.
If you do residential home improvement work, the state also requires at least $500,000 per occurrence in commercial general liability just to register. And if the job calls for additional insured status, the certificate alone won’t give it. Your policy needs the right endorsement.
What’s on a certificate of insurance?
What is a certificate of insurance?
Most COIs in the US are written on the ACORD 25 form, the standard certificate of liability insurance. Here’s what it covers and what the person reading it will check.
| Section | What it shows | What gets checked |
| Producer | Your agent or broker | Who to call to verify |
| Insured | Your business name and address | Matches your contract exactly |
| Insurers | The carriers behind each policy | Real, active companies |
| General liability | Policy number, dates, limits | Not expired, limits meet the contract |
| Automobile liability | Your business vehicle coverage | Covers the trucks you’ll use on site |
| Umbrella/excess | Extra liability limits | Meets any higher limit required |
| Workers’ comp | Policy and employers’ liability limits | Active for your employees |
| Certificate holder | Who asked for the COI | Correct legal name |
Does a certificate of insurance give the holder coverage?
No. The ACORD 25 says so in capital letters across the top. It’s issued “as a matter of information only” and “confers no rights upon the certificate holder.” It also doesn’t change, extend or add to the coverage on the policies listed.
That matters more than people think. A GC who sees their name typed into a box on your certificate isn’t covered just because of that. Coverage comes from the policy itself.
What coverage do NJ contractors need to show?
It depends on the job and the contract, but four policies come up again and again.
General liability is the big one. It covers injuries to other people and damage to their property, and the work you’ve already finished falls under products and completed operations. If you do home improvement work, New Jersey requires you to file proof of at least $500,000 per occurrence with the Division of Consumer Affairs before you can register. Many GCs and property managers ask for more. A common setup is $1,000,000 per occurrence with a $2,000,000 aggregate.
Workers’ compensation comes next. Registered home improvement contractors must carry it unless they’re exempt by law, and most employers with staff need it anyway.
Commercial auto covers the vans and pickups your business drives to and from the job.
Umbrella liability sits on top of the others. It comes up when a contract asks for limits higher than your base policies.
Curious what that general liability actually runs? Read General Liability Costs: What NJ Contractors Actually Pay for Coverage.
What does “additional insured” mean on a COI?
It means another party, usually the GC or property owner, gets protection under your liability policy for claims tied to your work.
Here’s the catch. Typing their name on the certificate doesn’t make them an additional insured. The ACORD form says that if the certificate holder is an additional insured, the policy must have additional insured provisions or be endorsed. Same with a waiver of subrogation, which stops your insurer from going after the other party to recover a claim. Some policies need an endorsement for that too.
So when a contract asks for either one, send it to your broker before you sign. If your policy doesn’t already have the endorsement, it may need to be added, and that can take a little time.
Why do general contractors ask subs for COIs?
Because in New Jersey, an uninsured sub can become their problem.
Under N.J.S.A. 34:15-79, a contractor who hands work to a subcontractor without workers’ comp can become liable for the compensation owed to that sub’s injured employee. A 2020 appeals case put it plainly: the law requires the contracting company to make sure the subcontractor’s employees have workers’ comp coverage.
That’s why GCs collect certificates before anyone starts work. If you’re the one hiring subs, do the same. Get a COI from every sub, check the dates, and keep a copy on file. Our guide Workers’ Compensation Insurance: What NJ Small Businesses Need covers your own coverage.
What mistakes hold up a job?
Most of them are small and fixable, if you catch them early.
The certificate holder’s name doesn’t match the contract. A policy expires in the middle of the project. The limits come in under what the contract requires. The GC asked for additional insured status, but the endorsement isn’t on your policy. Or you switched carriers and the client still has the old certificate.
Also watch for the cancellation box. The ACORD 25 says that if a policy is canceled before it expires, notice goes out according to the policy provisions. Don’t assume the certificate holder will be told automatically.
How do you get a certificate of insurance quickly?
Ask your broker, and give them everything up front. That means the certificate holder’s exact legal name and address, the project address, any additional insured or waiver of subrogation wording from the contract, and the limits required.
At Healy Brokerage, once your general liability policy is in place, you can download a certificate right away, and we can mail a hard copy if someone wants one. Landlords, lenders and clients ask for them all the time, so it pays to have the process down before bid season. If you’re adding a new kind of work, now is a good time for an Insurance Review: Protect Your NJ Business Before Year-End.
Frequently asked questions
What is a certificate of insurance for contractors?
A one-page summary, usually on the ACORD 25 form, that shows a contractor’s active policies, policy dates and limits.
How much general liability does a NJ home improvement contractor need?
At least $500,000 per occurrence to register with the New Jersey Division of Consumer Affairs. Contracts often require more.
Does being listed on a COI make someone an additional insured?
No. Additional insured status has to come from the policy or an endorsement. The certificate only shows information.
Can a general contractor be liable if a sub has no workers’ comp?
Yes. Under N.J.S.A. 34:15-79, the contractor can be liable for compensation owed to the uninsured sub’s employees.
Getting ready for your next job? Healy Brokerage helps contractors and businesses across New Jersey and New York line up the right coverage and certificates. Call 732-614-6103, see our General Liability, Workers’ Comp, Commercial Auto and Umbrella Liability pages, or contact us.
