If you’ve started a renovation or hired a contractor, you’ve probably been asked to provide a certificate of insurance (COI). It’s a standard part of the process, but it can be frustrating when requirements seem excessive — like being told your vendor needs more coverage than feels relevant for the job at hand.
The reality is that COIs aren’t about red tape. They’re about making sure the building, its residents, and even you as the owner are protected if something goes wrong.
Why buildings require certificates of insurance
COIs exist because, if there’s an accident, the building itself can be pulled into the claim. That includes situations like:
- A contractor being injured while working in your unit.
- Damage to common areas while materials are being transported.
- Water leaks or electrical mishaps that affect other apartments.
Your building’s insurance carrier sets the requirements, not the board or management. Their job is to reduce risk and make sure there’s enough coverage in place to handle these kinds of scenarios.
It’s not just about your project
It’s natural to think, “This is just a small job, why does it need so much coverage?” But even minor projects have ripple effects.
Think about a contractor carrying tools that damage the elevator door. Or a plumbing connection during the renovation that leaks into the unit below. Even a small job can create building-wide costs or lead to injury claims that name the condo or co-op.
The role of umbrella insurance
One area that often causes friction is umbrella coverage. This is extra insurance that kicks in once a contractor’s base policies are maxed out. Many smaller vendors don’t carry it because it’s expensive, but that also means they have less total coverage available.
From the building’s perspective, that limited coverage can leave everyone exposed. That’s why umbrella insurance requirements are common, even if the job itself seems simple.
In cases where a vendor doesn’t have umbrella coverage, they may be asked to provide a hold harmless agreement, essentially promising to take responsibility for any damage they cause.
What Daisy’s role really is
When an owner submits a COI, we're not deciding what’s acceptable and what isn’t, we're reviewing against building requirements. That typically means:
- The requirements set by your building’s insurance carrier
- Any additional rules in the building’s governing documents
If something is missing, we let you know. Our role is to make sure the paperwork lines up with those existing requirements, not to create new ones.
When a vendor doesn’t meet requirements
If a contractor can’t provide the coverage your building requires, there are usually two paths forward:
- Hold harmless agreement. In some cases, this satisfies the building’s insurer.
- Finding another vendor. If coverage is too low or the risk is too high, the insurer or board may still require you to choose someone else.
The best way to avoid last-minute delays is to ask upfront whether your contractor is familiar with providing COIs and can meet standard requirements.
The takeaway for owners
COIs may feel like a hurdle, but they serve an important purpose: protecting you, your neighbors, and the building from financial and legal fallout. The requirements come from your building’s insurance carrier and governing documents, and they’re designed to safeguard the community — even when it comes to small projects that can carry big risks.
