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COI basicsWill a COI tell you if a contractor's policy is cancelled?
The cancellation box on the certificate reads like a promise. Since 2009 it only points back to the policy, and the policy usually doesn't mention you.
Usually not. The cancellation box on the standard ACORD 25 certificate reads like a promise, but since the 2009/09 edition it only points back to the policy. And the policy usually sends cancellation notice to the contractor who bought it, not to you.
What the box actually says
Here is the current wording:
Should any of the above described policies be cancelled before the expiration date thereof, notice will be delivered in accordance with the policy provisions.
Older editions talked about mailing the certificate holder written notice within a stated number of days, though with a line saying that failing to do so imposed no obligation on the insurer or agent. The 2009/09 change dropped the days and handed the question to the policy.
So the real question is what the policy says. Standard cancellation conditions run between the insurer and its named insured. Unless an endorsement adds you, the owner or GC on the certificate isn't on that list.
Why the certificate can't fix it
It's tempting to ask the agent to type "30 days' notice to the certificate holder" into the description box. That doesn't create the right.
New York put this in statute. Insurance Law section 502 says a certificate "shall not amend, extend, or alter the coverage" of the policy it refers to, and "shall further not confer to any person any rights beyond those expressly provided by the policy." It also bars anyone from willfully requiring certificate language the policy "does not expressly include." New York's Department of Financial Services traces the rules to Article 5 of the Insurance Law, added in 2014 and 2015.
The certificate summarizes. The policy decides.
How to actually hear about a cancellation
- Ask for a notice endorsement. The fix is an insurer endorsement that schedules you to receive notice. BCS's example: "we agree to mail prior written notice of cancellation to the person(s) or organization(s) shown in the Schedule." BCS also warned these "are not generally available and are used sparingly by Insurers," so ask early.
- Track every policy period. Note each policy's expiration date from the COI and ask for a renewal certificate before that date, not after.
- Keep checking for the life of the job. A COI is a snapshot from the day it was issued. Put the check in your project requirements and repeat it, so a lapse shows up before a loss does.
Forsured checks each contractor COI against your project requirements and keeps checking for the life of the job, so a cancelled or expired policy doesn't hide in a file of old PDFs.
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About Forsured
Forsured is construction insurance compliance software for general contractors and the brokers who insure their trade contractors. You set each project's insurance requirements once. Forsured reads every contractor COI and endorsement against them, flags each gap with the reason, and keeps checking through renewals until the job is done.
- Project requirements with exceptions, not one template for every job
- Endorsement review (additional insured, waiver of subrogation, primary and noncontributory), not just the certificate
- A shared workspace where the contractor's broker sees exactly what's missing
- A person on your team approves every result, with a full review history
“What stood out to us is that Forsured doesn't just organize the paperwork. It helps us understand what meets the project requirements, what needs attention, and what needs to happen next. That clarity across the GC, subcontractor, and broker is where we see the real value.”
Send us one project's requirements and a contractor COI or two. We'll show you every gap we find, free.
Common questions
What does the cancellation box on an ACORD 25 say?
Since the 2009/09 edition: "Should any of the above described policies be cancelled before the expiration date thereof, notice will be delivered in accordance with the policy provisions." It promises nothing beyond what the policy already says.
Can I ask the agent to add 30-day notice to the certificate?
Writing it on the certificate doesn't change the policy. New York's Insurance Law section 502 says a certificate can't amend, extend or alter coverage or give anyone rights beyond the policy, and bars requiring certificate terms the policy doesn't expressly include. The notice has to come from the policy, usually through an endorsement.
Is a notice of cancellation endorsement easy to get?
Not always. Certificate tracking firm BCS wrote that these endorsements "are not generally available and are used sparingly by Insurers." Ask early, and plan to monitor coverage either way.
Sources
- New ACORD Form & 30-Day Notice of Cancellation, BCS (Business Credentialing Services), Aug 2, 2011
- N.Y. Insurance Law section 502, Prohibitions (certificates of insurance), New York State Senate
- Certificates of Insurance, New York State Department of Financial Services
We link to the original reporting and research behind every post. This post is general information, not legal or insurance advice: Forsured is a software company, not a law firm or a licensed insurance agency, so confirm anything you'll rely on with your broker or attorney. Spotted something we got wrong? Write to hello@forsured.ai and we'll fix it.