California Business Insurance Guide › Contracts & claims
Contract Insurance Requirements, Certificates and Claims
Most of the insurance terms that trip up business owners come from contracts: a general contractor, landlord, city or client asks for "additional insured, primary and non-contributory, with waiver of subrogation" and a certificate by Friday. Each of those phrases means a specific endorsement on your policy, and a certificate on its own doesn't add any of them. These guides explain what each one does and how to check it, and what to do when a claim or lawsuit arrives. For a policy review against a specific contract, start with business liability insurance.
Contract requirements, phrase by phrase
CONTRACT LANGUAGE | WHAT IT MEANS | GUIDE |
|---|---|---|
"Name us as additional insured"
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The other party gets coverage under your liability policy for claims arising from your work
| |
"Waiver of subrogation"
|
Your insurer gives up the right to recover what it paid from the other party
| |
"Primary and non-contributory"
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Your policy pays first, without asking their policy to share
| |
"$X umbrella or excess"
|
Extra limits above your primary policies
| |
"Claims-made coverage with a retro date" or "tail"
|
How a professional liability policy is triggered
|
California Contract Requirements, Certificates & Claims Management
Ensure full compliance with vendor insurance reviews, navigate government contract mandates, and know exactly what steps to take after a property loss or injury.
1
Certificates of insurance
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How to read a certificate of insurance (ACORD 25), box by box
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Certificate of insurance request template A copy-and-paste request to send your vendors.
2
Licensing and government contracts
Got a contract with insurance requirements you're not sure you meet? TSM is an independent agency — we compare carriers for you. Call (209) 524-6366 (Modesto) or (530) 221-3031 (Redding).
3
When something goes wrong
Already a TSM client? Go to the claims center.
Where to go next
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Insurance by industry: contractors, property managers and other contract-heavy fields
Frequently Asked Questions
Clear answers on contract requirements, certificates and claims
Does a certificate of insurance make someone an additional insured?
No. A certificate only summarizes coverage. Additional insured status comes from an endorsement on the policy, so ask for the endorsement itself. See how to read a certificate of insurance.
Can I add an additional insured to my policy myself?
Your agent or insurer adds it by endorsement. Some policies include blanket additional insured wording that applies automatically when a written contract requires it. See what additional insured means.
What should I do first when a customer threatens to sue?
Report it to your insurer or agent right away, before you respond on the merits. Late notice can put coverage at risk. What to do when a customer sues has the full action plan.
Check your policy against the contract before you sign
Send us the insurance section of the contract and we'll tell you what your current policy covers and what needs an endorsement.