Does a Certificate of Insurance Guarantee Coverage for Commercial Roofing?
The Difference Between a Certificate and a Policy
In commercial roofing, a Certificate of Insurance (COI) is frequently mistaken for proof of comprehensive coverage. However, a COI is merely a snapshot of a policy at a specific moment in time. It does not disclose the internal exclusions or endorsements that may fundamentally alter the protection available during a roofing project.
For a commercial property owner or facility manager, the risk lies in the 'hidden' exclusions that are common in high-hazard trades like roofing.
Common Exclusions That Affect Coverage
Even if a contractor provides a COI showing a $2,000,000 general liability limit, the policy may contain language that excludes coverage for:
- Open Flame/Hot Work: Many policies exclude damage caused by torches or kettles used in modified bitumen or built-up roofing (BUR) applications.
- Multi-Family/Condo Exclusions: Some policies exclude work on specific types of multi-family residential structures, even if they are managed commercially.
- Height Restrictions: Policies may limit coverage to buildings under a certain number of stories.
- Subcontractor Liability: Coverage may be void if the prime contractor hires a subcontractor who does not carry identical limits.
Why Verification Matters Before Signing
If an incident occurs—such as a fire or significant water intrusion—and the contractor’s policy contains an exclusion for that specific activity, the insurance carrier will deny the claim. In these instances, the financial liability often shifts toward the property owner’s own insurance or the management firm’s balance sheet.
To mitigate this risk, decision-makers should request the Schedule of Exclusions and the Additional Insured Endorsements (specifically Form CG 20 10 and CG 20 37 or their equivalents) rather than accepting the COI at face value.
Key Takeaways
- A COI is a summary document and does not list specific policy exclusions.
- Many standard policies exclude 'hot work' (open flame) or specific roof heights.
- Verification requires reviewing the actual policy endorsements, not just the certificate.
- Uninsured losses during a project often fall back on the property owner’s or manager's entity.
Next step
Request a full list of policy exclusions from the contractor's broker to ensure the specific scope of work is not excluded from coverage.