When Proof of Insurance Is Required to Win Construction Contracts
- Nate Jones, CPCU, ARM, CLCS, AU
- 8 hours ago
- 2 min read
In the construction industry, providing proof of insurance is often a critical requirement to secure contracts. Clients, project owners, and general contractors expect proof that your business is adequately covered against claims, accidents, and property damage. Failing to provide proof can mean losing valuable contracts, even if you are fully qualified.
This guide explains when and why proof of insurance is required, what types of coverage are typically requested, and how Wexford Insurance helps contractors quickly secure the right policies to remain compliant.
Why Proof of Insurance Matters in Construction
Construction projects involve high-risk activities, including:
Operating heavy machinery
Working at heights
Handling expensive materials and tools
Subcontracting multiple trades
Insurance protects all parties from financial loss in case of accidents, property damage, or lawsuits. Clients require proof to ensure that the contractor can cover liabilities without putting the project at risk.
Common Scenarios Where Proof of Insurance Is Required
1. Bidding for Projects
Most project owners require proof of insurance during the bidding process. Without documentation, your bid may be disqualified, regardless of experience or pricing.
2. Signing Subcontracts
Subcontract agreements often mandate general liability, workers’ compensation, and commercial auto insurance. Proof must be submitted before work begins.
3. Leasing or Accessing Job Sites
Property owners and municipalities often require proof of insurance before granting site access, especially for high-risk commercial or public projects.
Types of Coverage Often Required
Typical proof of insurance for construction contracts includes:
General Liability Insurance: Protects against third-party bodily injury or property damage.
Workers’ Compensation Insurance: Required if you have employees to cover workplace injuries.
Commercial Auto Insurance: Covers vehicles used for business purposes.
Professional Liability Insurance: Protects against claims of negligence or errors in your services.
How to Provide Proof of Insurance
Obtain a Certificate of Insurance (COI) from your insurer
Verify that the COI lists all required coverage types and limits
Include project owners, general contractors, or municipalities as additional insureds if required
Keep documentation up-to-date and readily accessible
How Wexford Insurance Helps Contractors Get Compliant Coverage
Wexford Insurance specializes in contractor insurance and can help construction businesses:
Quickly obtain the necessary policies to meet client requirements
Provide Certificates of Insurance for multiple projects
Tailor coverage to meet contract-specific limits and clauses
Compare options for competitive pricing while ensuring compliance