Why is it necessary for contractors to provide their own certificate of insurance if they are enrolled into a wrap-up? – Linda, Atlanta, GA
First, it should be noted that being enrolled in a wrap-up does not mean that all of a contractor’s potential exposures are covered. The exposures not covered by a wrap-up may include automobile liability, pollution liability, professional liability, or property and almost always includes Workers’ Compensation and General Liability exposures away from the project site because the wrap-up coverage is specific to the defined site. The contractor must provide evidence that these exposures are covered through their own risk transfer methods. Also, presenting a certificate of insurance identifying these coverages provides the wrap-up sponsor evidence of the contractors insurability, peace of mind that coverage exists should the contractor incur a claim outside the project site and/or wrap-up coverages, and additional protection by means of required endorsements such as Additional Insured status or Waiver of Subrogation language.
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