Primary and non-contributory
The sub’s policy pays first, and your policy isn’t asked to share. See this page.
Glossary
Contractor insurance glossary, in plain English
Short answer
These are the words you’ll see on certificates, endorsements and subcontracts, explained without the legalese. Each one is short. Where there’s a deeper page, we link to it. For anything that affects your own contract, ask your broker or attorney.
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Free COI auditA
ACORD 25
The standard one-page certificate of liability insurance. It lists a business’s policies, dates and limits. See how to read one.
Additional insured
Someone added to another person’s policy so they’re covered for certain claims. It needs an endorsement. More here.
Aggregate limit
The most a policy pays in total for the whole policy period, no matter how many claims there are.
B
Blanket additional insured
An endorsement that adds anyone your contract requires as an additional insured, without naming each one.
C
Cancellation notice
A notice an insurer sends when it cancels a policy. The standard certificate says the insurer will “endeavor” to tell the holder, which isn’t a guarantee.
Certificate holder
The person or company the certificate is addressed to. Being the holder doesn’t make you covered.
Certificate of insurance (COI)
A one-page summary of someone’s insurance, issued by their agent. Read more.
CG 20 10
A common standard endorsement form that adds an additional insured for ongoing operations. See ongoing vs completed.
CG 20 37
A common standard endorsement form that adds an additional insured for completed operations, meaning problems found after the work is done.
Claims-made
A type of liability policy that covers claims reported while the policy is active. See occurrence vs claims-made.
Completed operations
Coverage for damage or injury that happens after the work is finished, caused by that work.
D
Deductible
The amount you pay out of pocket on a claim before the insurer pays the rest.
E
Employers’ liability
Part of a workers’ comp policy. It covers certain lawsuits from an employee’s injury that fall outside normal workers’ comp benefits.
Endorsement
A change or addition to a policy, attached as a separate form. Additional insured status comes from an endorsement.
Exclusion
Something a policy doesn’t cover. Exclusions are in the policy, not on the certificate.
Experience mod (EMR)
A number that compares a company’s workers’ comp claims history with similar companies. A lower number is better. Some GCs use it when picking subs.
G
General liability (GL)
Insurance for injuries and property damage that your work causes to other people.
I
Indemnity (hold harmless)
A contract promise to cover someone else’s losses. States limit what indemnity clauses can do in construction contracts.
N
NAIC number
A five-digit ID given to each insurance company by the National Association of Insurance Commissioners. It’s on the certificate next to the insurer’s name.
Named insured
The person or company the policy was bought for. The certificate should show the same name as on your contract.
Non-subscriber
In Texas, an employer who chooses not to carry workers’ comp. Texas guide.
O
Occurrence
A type of liability policy that covers an incident that happens while the policy is active, even if the claim comes later.
P
Per-occurrence limit
The most a policy pays for one event.
S
Self-insured retention (SIR)
Like a deductible, but you pay it before the insurer starts paying anything, and the insurer may not pay it back to you.
Statutory employer
In some states, the law treats a general contractor as the employer of a sub’s workers for workers’ comp if the sub has no coverage. Examples: Florida, Georgia.
Subrogation
After an insurer pays a claim, its right to try to get the money back from whoever caused the loss.
U
Umbrella and excess
Policies that add limit on top of the regular ones. Read more.
W
Waiver of subrogation
The insurer gives up its right to go after a certain party, like you, after it pays a claim.
Workers’ compensation
Insurance that pays medical bills and lost wages when a worker is hurt on the job. Rules vary a lot by state.
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